Negotiation

Distributive Strategy

2 main strategies:

Distributive/value claiming (1 axis model) obtaining biggest piece of negotiation pie

* Often makes negotiators focus more on their differences and ignore what they have in common

Integrative/value creating (2 axis model) increasing negotiation pie

In reality, most negotiations are mixed motive ones. Why?

* Interdependence and conflicts of interest create both convergent and conflicting goals for the parties. E.g. integrative bargaining also has a stage where value created is distributed (i.e. claimed)

* This is particularly the case where there is some history between the parties and expectations of future dealing. See Dual concerns model

* Which situations are most suitable for using distributive bargaining?

* What is the role of the BATNA in such situations (i.e. distributive bargaining situations)?

* builds perceptions of power and urgency

* shapes time pressures

* not static – needs attention and development

* What are the fundamental elements in distributive bargaining?

* Intensive preparation and clarity in selecting BATNA, setting target, resistance point

* get settlement as close as possible to THEIR resistance point i.e. capture maximum amount of the bargaining range

* Get them to shift their resistance point in your favour (e.g. via re-framing, or increasing THEIR costs of failing to settle or of delays. NB collective bargaining (e.g. EB) and no pay increase backdating as a condition on the part of management)

* get them to believe (your) outcome is the best possible by e.g. giving them minimum useful information and clues and concealing yours

* Prime objective of distributive bargaining maximise value of current deal. Ways 1. Push for settlement close to seller’s (unknown) RP; convince seller to change her RP by influencing her beliefs about condo’s value; convince seller to change RP to create +ve BR; convince seller this is the...