Answer to Question 1
TRUE
Answer to Question 2
Distributive bargaining operates under zero-sum conditions. The essence of distributive bargaining is negotiating over who gets what share of a fixed pie. Here fixed pie means a set amount of goods or services to be divvied up. When the pie is fixed, or parties believe it is, they tend to bargain distributively. Parties involved in distributive bargaining have opposite interests. Distributive bargaining is characterized by low information sharing and it focuses on short term relationships. When you are engaged in distributive bargaining, research consistently shows one of the best things you can do is make the first offer. One reason for this is that making the first offer shows power; individuals in power are much more likely to make initial offers, speak first at meetings, and thereby gain the advantage. Another reason is the anchoring bias. People tend to fixate on initial information. Once that anchoring point is set, they fail to adequately adjust it based on subsequent information.
