Imagine that you are buying a used car.
1. Assume that you have $15,000 to spend in total on the used car, any needed repairs, and on
auto insurance. You do not currently own a car because you have been using public
transportation in Boston. However, now you want a car because you are planning to take a long
summer trip, driving across the United States. You have decided to bargain with the owner of a
used luxury car who told you that he is interested in selling the car for $15,000 but is flexible on
the price, especially since the car needs new tires and has 50,000 miles on it.
a. What would be your initial offer to the seller? Why? What factors would you take into
consideration in choosing this number?
b. What would be your target point? Why? What factors would you take into consideration
in choosing this number? Be specific.
c. What would be your reservation price? Why? What factors would you take into
consideration in choosing this number? Be specific.
2. What is your BATNA in this situation? What factors would you take into consideration in
determining your alternative(s)? Be specific.
3. In preparing to participate in this type of negotiation, chapter three in your textbook states that
there are nine possible steps. Which two of the nine steps do you think might be the hardest for
you in this particular situation? Explain why. What might you do to accomplish these two steps?
Be specific.
4. Based on your previous experience in distributive bargaining situations, which stage of the
negotiation do you think is likely to give you the most difficulty? (For example, the opening
offer, making concessions, obtaining a commitment, closing the deal.) Why have you had
problems with this stage in the past? Based on what you have learned so far in this course, what
might you do differently in this used car situation? Be specific.
5. Review the handout on “hardball tactics” in the Readings folder. Based on your previous
experience in distributive bargaining situations, which hardball tactic(s) do you think the seller
of the used car might use against you? Based on what you have learned in this course, what
might you do to respond to the hardball tactic(s) in this situation? Be specific.