| Course | NEG-7310 Negotiations |
|---|---|
| Module | Module 2 |
| Paper type | Discussion forum: initial response and two comments |
| Length | About 454 words |
| Format | Discussion post with APA 7 citations |
| School | Thomas Edison State University |
| Program | Master of Business Administration |
| Updated | October 2026 |
Free sample paper for NEG 7310 Module 2
Module 2 Discussion: Four Vans, One Price
Four Vans, One Price: Target, Resistance Point and Anchoring in a Distributive Deal
We needed four service vans before the heating season. A fleet remarketing company listed four three-year-old cargo vans with shelving at $34,000 each. Only price was really open: the vans, delivery date and warranty were fixed. Lewicki et al. (2011) describe this as distributive bargaining, in which the parties divide a fixed resource and one side's gain is the other's loss. Speed mattered to us, since the vans had to be on the road by October, but I kept that deadline to myself. In the experiments of Pinkley et al. (1994), attractive alternatives led to better outcomes, which matched my experience: the lease option let me hold firm.
I set three points before calling. My target was $26,000 a van, based on auction results for similar vans. My resistance point, the most I would pay, was $30,500, because our alternative was leasing new vans at a cost equal to about that price over the time we would keep a used one. Leasing was my fallback if no deal emerged, my BATNA in the textbook's terms, and knowing its cost let me walk away calmly. I estimated the seller's resistance point near $27,000, since dealers rarely sell below auction value plus their preparation costs, which put a positive bargaining range between about $27,000 and $30,500.
Galinsky and Mussweiler (2001) found that first offers anchor what follows and often leave the party who opens better off, unless the other side concentrates on its own alternatives and on where the anchor is weak. I therefore made the first offer, $24,500 a van, and explained it with three auction results. The seller countered at $32,000.
I conceded in shrinking steps: to $26,500, then $27,500, then $28,000, signaling that I was nearing my limit. Each concession came with a reason, such as a mileage figure or a tire replacement cost, so that it did not look like a retreat. The seller moved from $32,000 to $30,000 and then to $29,000. We closed at $28,250 a van when I offered to take all four that week and pick them up ourselves, which saved the seller transport. The total of $113,000 was $23,000 below the list price and $9,000 below my resistance point across the four vans.
Comment on Jasmine's Post
Jasmine, you accepted the first salary offer for fear of seeming greedy. The research on anchors suggests a counteroffer grounded in market data is usually expected. What alternative did you have at the time?
Comment on Kevin's Post
Kevin, you listed your house below market to attract bids, a reverse anchor. Did the bidding war that followed show that a low anchor can work when buyers compete?
References
Galinsky, A. D., & Mussweiler, T. (2001). First offers as anchors: The role of perspective-taking and negotiator focus. Journal of Personality and Social Psychology, 81(4), 657-669. https://doi.org/10.1037/0022-3514.81.4.657
Lewicki, R. J., Barry, B., & Saunders, D. M. (2011). Essentials of negotiation (5th ed.). McGraw-Hill Irwin.
Pinkley, R. L., Neale, M. A., & Bennett, R. J. (1994). The impact of alternatives to settlement in dyadic negotiation. Organizational Behavior and Human Decision Processes, 57(1), 97-116. https://doi.org/10.1006/obhd.1994.1006
What the NEG 7310 Module 2 instructions ask for
The Module 2 forum covers the strategy and tactics of distributive bargaining. Expect to analyze a single-issue negotiation you took part in or know well, identify target and resistance points, the bargaining range and each side's alternatives, and evaluate the opening offers, concessions and close. Use the textbook and research, especially on anchoring and alternatives. Answer two classmates with questions that test distributive concepts against their cases. A synchronous session in this module also introduces the live negotiation teams. Write down your target and resistance points before describing the offers, and explain where each came from. If you are using a past negotiation, be honest about whether you set these points at the time or only in hindsight.
How this NEG 7310 Module 2 example is built
The post opens by identifying the negotiation as distributive. A paragraph sets target, resistance point and the alternative behind it, and estimates the other side's resistance point and the bargaining range. A paragraph uses research on first offers to explain the anchoring choice. A paragraph traces the concession pattern and the close, with totals. The replies apply anchoring and alternatives to a salary offer and a house sale, each ending in a question for the classmate. Each concession is shown with the reason that accompanied it, and the close is explained by a small trade, collecting the vans, that saved the seller money. Totals compare the result with both the list price and the resistance point. Each reply ends with a question.
Reading the NEG 7310 Module 2 grading rubric
This forum is graded on accurate use of distributive concepts, analysis backed by the textbook and research, and replies that take the forum somewhere new. Posts that derive the resistance point from a real alternative, rather than choosing a number, show understanding of how alternatives set limits. Explaining the anchor and concession pattern with research demonstrates strategic thinking. Specific numbers make the analysis checkable, and replies that apply a concept to the classmate's case add the most. Comparing the result with the resistance point and the list price, in totals, shows how much of the bargaining range the negotiator captured and lets a reader judge the outcome. Honest hindsight earns credit too.
Common NEG 7310 Module 2 mistakes, and how to avoid them
Common deductions come from describing a negotiation without target and resistance points, by confusing the resistance point with the opening offer or by claiming success without comparing the result to their limits. Others ignore the other side's likely limits. Set your points before analyzing the offers. Tie your resistance point to your best alternative. Explain your anchor. Show how concessions signaled your limit. Compare your result with your own limits, not just with the other side's opening, and say what you would change in your next deal. A free first sample on your own NEG-7310 Module 2 discussion is available on request.
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NEG 7310 Module 2 questions, answered
Where can I find a free NEG 7310 Module 2 sample paper?
A distributive negotiation for four used service vans, with two replies, is the discussion above.
What is a resistance point?
The point beyond which a negotiator will not go, usually fixed by what the negotiator could get with no deal at all.
What is the bargaining range?
The spread between the parties' resistance points; agreement is possible only if it is positive.
Should you make the first offer?
Research suggests a well-grounded first offer anchors the negotiation and often helps the party who makes it.
What do shrinking concessions signal?
That the negotiator is approaching the limit of what they will give.