STRUCTURE OF DISTRIBUTIVE NEGOTIATION

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STRUCTURE OF DISTRIBUTIVE NEGOTIATION

• Gilles Gauthier
• Institute of Applied Economics

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STRUCTURE OF DISTRIBUTIVE NEGOTIATION

• 1. Aspiration levels
• - Are in conflict.
• 2. Tensions
• - High.
• 3. Interdependence
• - Neither party can reach its objectives alone.
• 4. Objective
• - To gain as much as possible, but strike an
  agreement nonetheless.

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STRUCTURE OF DISTRIBUTIVE NEGOTIATION

• 5. Best alternative and resistance point
• - Remain secret, unless otherwise necessary.
• 6. Starting point
• - Neither too close nor too far from the
  aspiration level.
• - Ask for a lot, but concede slowly
  concessions must play a role
• 7. Bargaining range
• - Must be discovered

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STRUCTURE OF DISTRIBUTIVE NEGOTIATION

• 8. Settlement point
• - Obtain as much of the bargaining range as
  possible.
• 9. Bargaining mix
• - Importance of each issue varies depending on
  the party.
• - Each issue may have its own aspiration level,
  best alternative and resistance point (breaking
  point).

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STRUCTURE OF DISTRIBUTIVE NEGOTIATION

• 10. Levels of trust and motivation
• - Little trust.
• - Strong motivation arising from a desire to be
  competitive.
• 11. Communication
• - Complex because of strategic manipulation
• inherent in sharing information.
• - The role of disclosing information is to gain
  strategic advantage each party is seeking to
  conceal information.

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STRUCTURE OF DISTRIBUTIVE NEGOTIATION

• - The information received is used to increase
  power each party strives to get the other
  party to reveal itself.
• 12. Source of legitimacy for the other
  party judgment based on mere intent
• - Content issues may be confused with
  relationship issues.
• 13. Credibility
• - Firmness and ability to strike a favourable
  balance of power.

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STRUCTURE OF DISTRIBUTIVE NEGOTIATION

• 14. Willingness to compromise
• - Vased on personal objectives (egocentric
  interests).
• 15. Resources
• - Are limited.
• 16. Choices
• - Todays choices do not affect those of
  tomorrow.

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STRUCTURE OF DISTRIBUTIVE NEGOTIATION

• 17. Positions and concessions
• - Play a major role.
• - Driving force for movement.
• - Allows iteration.
• 18. Results
• - More important than the relationship.