Question 1

What is the core of a negotiation involving many parties?

Accepted Answer

The answer of What is the core of a negotiation...

Question 2

Explain the concept of an empty core.

Accepted Answer

The answer of Explain the concept of an empty core....

Question 3

Which of the following statements is true about the utility possibility frontier (UPF) for two people trying to strike a deal?

Accepted Answer

A) It limits the moves two individuals can make at different stages of the game. 
B) It tells us how the point on the UPF that they finally reach might differ with their bargaining tactics. 
C) It predicts the exact point where the two bargainers will end up irrespective of their bargaining tactics. 
D) It tells us how the point on the UPF that they finally reach might differ with their personal characteristics

Question 4

A, B, and C have the following preferences for fruits: 
A: apples > bananas > peaches
B: bananas > apples > peaches
C: apples > peaches > bananas
Find the median voter's preference, if any, using a two-phase election.

Accepted Answer

A) Preferences are intransitive. 
B) Apples 
C) Bananas 
D) Peaches

Question 5

Which of the following is a characteristic of the core?

Accepted Answer

A) The core is the set of all allocations that cannot be blocked. 
B) The core is the set of all allocations where the value realized by the members of the coalition are same as what they can realize individually form the core. 
C) Cores are broken when one or more participants withdraw from the coalition. 
D) Any allocation that makes even one of the parties to the transaction better off is in the core.

Question 6

A good which is nonexcludable and nonrival is called:

Accepted Answer

A) a public good. 
B) a marketable good. 
C) a private good. 
D) a consumer good.

Question 7

A characteristic function is:

Accepted Answer

A) one that identifies negotiations which depend on the characteristics of the bargainers. 
B) one that gives the value each possible coalition of a group's members can create by operating independently. 
C) one that identifies the most beneficial price for the buyer involved in a transaction. 
D) one that identifies the most beneficial price for the seller involved in a transaction.

Question 8

Researchers have found numerous significant relationships between final prices agreed upon by bargainers and their personal characteristics such as education, income, and age.

Accepted Answer

A) True 
 B)False

Question 9

Identify the correct statement from the following.

Accepted Answer

A) Good faith bargaining implies the seller will never decrease the price for a particular buyer. 
B) Distrust is the norm when electricity producers negotiate a deal to exchange power by misrepresenting their costs. 
C) Poker is the exception where norms do not come into play. 
D) Good faith bargaining norms vary among different types of transactions.

Question 10

What does an empty core signify about the resources of the negotiators?

Accepted Answer

The answer of What does an empty core signify about...

Question 11

Identify the correct statement about repeated negotiations from the following.

Accepted Answer

A) Patterns in repeated negotiations can persist over time but are usually region-specific. 
B) The payoff from repeated negotiations is higher than that from negotiations which are unlikely to be repeated. 
C) Experience can help the parties understand each other's positions when negotiations involve previously unencountered issues. 
D) The greater the experience of the buyer the higher the benefits he realizes from a repeated negotiation.

Question 12

A car purchased by you is rival because:

Accepted Answer

A) you can prevent others from using your car. 
B) it has many competitors. 
C) your use of this car makes it unavailable for others. 
D) it is nonexcludable.

Question 13

Terry wants to sell his car and the lowest price he is willing to accept is $3,000.Alice likes the car and is willing to pay at most $4,000 for it.They begin to negotiate to arrive at a price.Which of the following statements will be true?

Accepted Answer

A) They are playing a zero-sum game. 
B) The higher the price they agree on, the greater the benefit to both. 
C) The longer they take to arrive at an agreed price, the lower the benefit to them. 
D) They are playing a positive-sum game where their benefits add up to $1,000.

Question 14

Which of the following statements is true about public goods?

Accepted Answer

A) They are always produced by the government. 
B) The market-determined output is efficient. 
C) The government can hire a private entity to produce a public good. 
D) Nonexcludability is sufficient condition for a good to classified as a public good.

Question 15

Identify the statement which is true about bargaining.

Accepted Answer

A) There is a strong relationship between bargaining power and education. 
B) The distribution of prices within the zone of agreement has a high standard deviation. 
C) Average final prices are often near the halfway mark between valuation and opportunity cost and there is hardly any deviation from this. 
D) There is a strong relationship between bargaining power and income.

Question 16

In which of the following are the parties likely to avail themselves of norms for the transaction?

Accepted Answer

A) When transactions are repeated 
B) When the stakes for both parties are high 
C) When court costs are low 
D) When information costs are high

Question 17

In which of the following cases are disputes more likely to be settled by negotiations than by court cases?

Accepted Answer

A) When the parties involved are risk averse 
B) When time is not an important factor 
C) When court costs are low 
D) When parties have asymmetric beliefs about facts

Question 18

The value of goods produced by coalition A is worth $50, and by coalition B is worth $30.If together they produce $100 of them, the game is called superadditive.

Accepted Answer

A) True 
 B)False

Question 19

A lawyer's ability to understand a client's legal situation and his professional norms may improve the outcome of a negotiation with another attorney, relative to the outcome if the client bargained for herself.

Accepted Answer

A) True 
 B)False

Question 20

An empty core is more likely if the individuals in a group own highly complementary resources.

Accepted Answer

A) True 
 B)False

Exam 17: Conflict, Negotiation and Group Choice

What is the core of a negotiation involving many parties?

Explain the concept of an empty core.

Which of the following statements is true about the utility possibility frontier (UPF) for two people trying to strike a deal?

A, B, and C have the following preferences for fruits: A: apples > bananas > peaches B: bananas > apples > peaches C: apples > peaches > bananas Find the median voter's preference, if any, using a two-phase election.

Which of the following is a characteristic of the core?

A good which is nonexcludable and nonrival is called:

A characteristic function is:

Researchers have found numerous significant relationships between final prices agreed upon by bargainers and their personal characteristics such as education, income, and age.

Identify the correct statement from the following.

What does an empty core signify about the resources of the negotiators?

Identify the correct statement about repeated negotiations from the following.

A car purchased by you is rival because:

Terry wants to sell his car and the lowest price he is willing to accept is $3,000.Alice likes the car and is willing to pay at most $4,000 for it.They begin to negotiate to arrive at a price.Which of the following statements will be true?

Which of the following statements is true about public goods?

Identify the statement which is true about bargaining.

In which of the following are the parties likely to avail themselves of norms for the transaction?

In which of the following cases are disputes more likely to be settled by negotiations than by court cases?

The value of goods produced by coalition A is worth $50, and by coalition B is worth $30.If together they produce $100 of them, the game is called superadditive.

A lawyer's ability to understand a client's legal situation and his professional norms may improve the outcome of a negotiation with another attorney, relative to the outcome if the client bargained for herself.

An empty core is more likely if the individuals in a group own highly complementary resources.