Win-Lose or Win-Win 7

LOSE-LOSE
Although most negotiations can be described as win-lose or win-
win, some result in a ‘‘lose’’ for all parties. In this game, both sides
lose something in the negotiations. The best example of a lose-
lose game is a compromise in which the total value of the deal is
diminished. We’ve always been taught that compromise is a good
thing. However, a series of compromises can leave both sides with
far less than they needed in the first place. One example of a lose-
lose game is that of a union that makes unreasonable demands and
winds up forcing a company to close. In this case, both the com-
pany and union members are losers.

CHAPTER REVIEW
Test what you’ve learned so far with this open-book review quiz.

1. Explain the characteristics of a win-lose negotiation.

2. How would you describe the value of relationships in win-lose deals?

3. Describe a win-win negotiation from your own experience.

4. What is meant by ‘‘creating value through trade?’’

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