Which statement correctly describes a highball/lowball tactic?

Which statement correctly describes a highball/lowball tactic?

• A. The other side sets a very modest opening offer and immediately concedes.
• B. The tactic relies on mutual respect and transparency.
• C. The other side presents a low opening offer to anchor, then concedes upward.
• D. The other side sets a very high opening offer and then makes a concession.

Answer: (D)

In negotiations, extreme opening offers are used to anchor the discussion and shape how later concessions are perceived. Starting with a very high opening offer creates a powerful reference point, and when a concession is made to move toward a more reasonable figure, the result often feels like a favorable deal to the party making the concession. This uses anchoring and contrast: the initial high demand makes the final agreement seem like a win in comparison. The statement that describes this pattern—setting a very high opening offer and then making a concession—captures the classic highball approach. The other descriptions don’t fit as neatly: starting with a modest opening and conceding immediately lacks a strong anchor; emphasizing mutual respect and transparency isn’t about manipulating anchors; and starting low and then moving upward describes the lowball form, a different variant of the tactic.

In negotiations, extreme opening offers are used to anchor the discussion and shape how later concessions are perceived. Starting with a very high opening offer creates a powerful reference point, and when a concession is made to move toward a more reasonable figure, the result often feels like a favorable deal to the party making the concession. This uses anchoring and contrast: the initial high demand makes the final agreement seem like a win in comparison.

The statement that describes this pattern—setting a very high opening offer and then making a concession—captures the classic highball approach. The other descriptions don’t fit as neatly: starting with a modest opening and conceding immediately lacks a strong anchor; emphasizing mutual respect and transparency isn’t about manipulating anchors; and starting low and then moving upward describes the lowball form, a different variant of the tactic.