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  • 8/16/2019 Mastery Quiz 1 – 2 _ Coursera

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    12/8/2015 Mastery Quiz 1 – 2 | Coursera

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    Mastery Quiz 1 – 2

    10/14 questions correct

    You haven't passed yet. You need at least 11 questions correct to pass.

    Review the material and try again! You have 1 retake every 8 hours.

    Review Related Lesson (/learn/negotiation/home/week/2)

    1.

    Preamble: This is the first mastery quiz for the course. The questions on this quiz are meant to test whether you have

    watched all the material and understand the concepts presented in Modules 1 – 2. If you are reading this, I hope that

    means you’ve had a chance to look over the questions in advance (provided in the Preview of Mastery Quiz 1 – 2) and

    so you know what to expect.

    Q1. What is the pie?

    The pie is the benefit the negotiating parties could get if they work together.

    https://www.coursera.org/learn/negotiation/home/week/2 https://www.coursera.org/learn/negotiation/home/week/2

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    Well done!

    The pie is the difference between the benefit the negotiating parties could get if they work together and the

    sum of the benefits each party could get on its own.

    The pie is the difference between the benefit one party can get on its own and the benefit the other party can get on its own.

    3.14159…

    2.

    If Abe and Bea reach an agreement, they can create 12 together. If they don’t, Abe can create 3 on his own and Bea

    can create 1 on her own. What is the pie?

    8

    Well done!

    That’s right. The pie is how much more the two parties can create by working together compared to what they

    can create without an agreement. Therefore the pie is 12 - (3 + 1) = 8.

    3.

    In the above scenario, how much should Abe get?

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    7

    Well done!

    That's right. If Abe and Bea split the pie (8), Abe will get 3 + 4 = 7.

    4.

    Andrea and Beth are dining at a fine restaurant. There is a bottle of 2009 Grgich Hills Chardonnay on the menu and

    the price is $100. To keep things simple, albeit unrealistic, assume the restaurant only sells whole bottles and this is

    the only wine they carry.

    Andrea would be willing to pay $110 to drink the whole bottle.

    Andrea would be willing to pay $90 to drink half the bottle.

    Beth would be willing to pay $80 to drink the whole bottle.

    Beth would be willing to pay $50 to drink half the bottle.

    They would like to share a bottle if it makes sense to do so (and if they can agree on how to divide the costs). To see if 

    it makes sense, what is the pie, in dollars?

    40

    Sorry, that’s not what we’re looking for.

    This is a challenging question. Remember the pie is how much more the two parties can create by working

    together compared to what they can create without an agreement. If they don’t reach an agreement, what

    would Andrea do on her own? What would Beth do on her own? If they do reach an agreement how much

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    value do they create? How much more  value do they create together compared to the result with no

    agreement?

    If you are still stuck, you might want to review the Sea Corp. video.

    Acceptable responses

    $30

    If they don’t reach an agreement, Andrea will get $10 and Beth will get nothing. If they do reach an agreement,

    they will jointly have created $40 of surplus ($90 + $50 – $100). Thus the pie is $30.

    30

    If they don’t reach an agreement, Andrea will get $10 and Beth will get nothing. If they do reach an agreement,

    they will jointly have created $40 of surplus ($90 + $50 – $100). Thus the pie is $30.

    5.

    In the question above, how much should Andrea pay, in dollars, if they split the pie?

    70

    Sorry, that’s not what we’re looking for.

    Andrea needs Beth just as much as Beth needs Andrea to do this deal, so they should split the pie. If you’ve

    calculated the pie correctly, then both Andrea’s and Beth’s gain from sharing the bottle will be half the pie. For

    Beth, that means she pays that amount less than her value of the bottle. But that’s not quite the case for

    Andrea.

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    A common mistake here is to leave out the gain Andrea can get on her own. Remember that if they don’t

    reach an agreement, Andrea will still buy a bottle of wine and get some surplus. Thus Andrea has to do even

    better than that as a result of the agreement.

    Acceptable responses

    $65

    If they split it evenly, each side will end up with $15 of the pie. Thus Beth pays $50 – $15 = $35 and Andrea

    pays $90 – ($15 + $10) = $65. Note Andrea starts with the $10 of value that she can create on her own.

    65

    If they split it evenly, each side will end up with $15 of the pie. Thus Beth pays $50 – $15 = $35 and Andrea

    pays $90 – ($15 + $10) = $65. Note Andrea starts with the $10 of value that she can create on her own.

    6.

    Recall that if Aegean and Baltic share the cost of a new software program, Aegean will benefit $100 while Baltic

    benefits $200. If the software costs $100 total, how much should Aegean pay, in dollars?

    50

    Well done!

    If the software costs $100, the net benefit they would receive together is $200. If they work on their own,

    Aegean will not buy the software since the cost ($100) cancels out its benefit ($100). Baltic will buy the

    software for a net benefit of $200 - $100 = $100. Therefore the pie, or the difference between working

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    together and working separately, is $200 - $100 = $100. The pie should be divided equally: $50/$50. Aegean

    and Baltic will each pay $50. Here it is in tabular form:

    Aegean Baltic Total

    Net Benefit: Together ------- ------ 200

    Net Benefit: On Their Own 0 100 100

    Pie ------- ------ 100

    Total benefit each side gets when they split the pie 50 150 200

    How much each pays 50 50 200

    Show other acceptable response

    7.

    What is the Shapley Value?

    Well done!

    Well done.

    For each party in the group, it is the amount of pie created by that party joining others in the group,

    averaged across all possible orderings in which parties join the group.

    For each party in the group, it is half of the amount of pie created by that party joining others in the group,

    averaged across all possible orderings in which parties join the group.

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    For each party in the group, it is the maximum portion of the pie created by that party joining the group,

    across all possible orderings in which parties join the group.

    8.

    In the Planet–Gazette merger, the Gazette was twice as big as the Planet. If the Planet were the same size as the

    Gazette, how much more of the pie would you expect the Planet to get?

    Well done!

    The pie gets split in half, not because the Planet and Gazette are equal in size, but because the cooperation of 

    both parties is needed to complete the merger and create the pie.

    No more

    50% more

    100% more

    9.

    Recall in the Planet–Gazette merger case, the increased productivity from the Gazette’s know-how was worth $1

    million to the Planet. Imagine the Planet could hire a consultant to improve its productivity up to the same level as the

    Gazette. The cost of the consultant would be $200,000. Of course, with the merger, there is no need for the

    consultant. When the Planet has the ability to hire a consultant, how much more money should the Planet get in the

    merger?

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    Sorry, that's incorrect.

    The possibility of hiring the consultant changes the benefit that the Planet can achieve on its own without the

    help of the Gazette. What is the new pie and what is the Planet's new sta