Interest Based Bargaining

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INTEREST BASED BARGAINING

This article by Mark Geiger outlines the general principles and advantages that can be derived by

use of Interest Based Bargaining. It compares the principles of this approach to the more

traditional ‘positional’ bargaining employed in many organized bargaining settings, especially in

unionized collective bargaining. Mark has been involved in a wide variety of bargaining for and

with physicians, teachers, the film industry, hospitals, private and public schools, other health care

providers, and a wide variety of private employers including in the manufacturing, service,

construction and transportation sectors. Although this approach is difficult to implement, especially

where traditional positional bargaining has been the norm, he argues the results that are achievable

can make the effort well worth it.

INTRODUCTION

People interact everyday in ways which can be seen as bargaining. Where are we going for lunch,

what movie are we going to see, what car will we buy? These and many other similar issues are

discussed between and among friends and family members, but they would probably not realize that

they are in essence ‘bargaining’. In coming to a mutual; decision about what actions to take in any

given circumstance, the individual interests of each participant plays a part in the discussion, and

ideally, the final ‘decision’ is the one that meets , to the greatest extent possible, the individual

interests of each of the participants. Normally in these ‘friendly’ interchanges, the interests of each of

the participants is openly expressed and the final decision hopefully takes those interests into account.

Many people would not identify these discussions as ‘negotiations’, but that is in essence, what they

are.

On the other hand, the term ‘negotiation’ is more commonly associated with the purchase of a major

asset such as a house or car. In these circumstances, the seller wants to achieve as much as possible,

and...