Stakes in negotiation: The stakes in a negotiated situation are what you stand to gain or lose. If the issue is high-stakes, which approach may be appropriate?

• A. Evade the issue.
• B. Insisting or cooperating may be appropriate when stakes are high.
• C. Always comply.
• D. Ignore the issue.

Answer: (B)

Stakes in negotiation reflect what you stand to gain or lose, so when the issue is high-stakes you want a stance that protects your interests while still leaving room to reach an agreement. Insisting on what you need can push the negotiation toward terms that are favorable or necessary for you, especially if you have strong leverage or good alternatives. At the same time, cooperating and looking for mutual gains helps maintain the relationship and can unlock terms that work for both sides, which is often essential when the price of walking away is high or the collaboration matters long-term.

Evading the issue or ignoring it ignores the importance of the terms and loses influence in the discussion, while simply always complying can sacrifice your essential interests when the stakes are large. So, choosing an approach that combines clear, principled demands with a readiness to collaborate—as the situation requires—tends to lead to better outcomes when the stakes are high.