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18 Chapter 3
CHAPTER 3
Distributive Negotiation: Slicing the Pie
OVERVIEW
This chapter is probably one of the two most important in the book (the other being Chapter 4). The
instructor can introduce the BATNA concept (preferably in the form of a debrief of the first exercise of
the course). Following this, the instructor can introduce the bargaining zone concept and work through
positive and negative bargaining zones. The rest of the chapter is divided into two major skill areas: (1)
how to increase one’s slice of the negotiation pie; and (2) understanding the psychology (and economics)
of fairness. I usually cover pie-slicing skills in detail, as students are so preoccupied with this subject;
and later in the term, I raise the topic of fairness. There is any number of ways to make this material
come alive in the classroom, ranging from good old-fashioned lecture to small discussion groups.
Another alternative is to give students a “homework” assignment to analyze their own negotiations in
terms of pie-slicing strategies. The instructor can collect these and share the “best” examples with the
entire class. Given that distributive negotiation is competitive, a discussion of lying and ethics is also
appropriate.
LECTURE OUTLINE
Exhibit 3-1A: Positive Bargaining Zone Exhibit 3-1B: Negative Bargaining Zone
Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education, Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,
The Mind and Heart of the Negotiator 5/e (Thompson) Inc. publishing as Prentice Hall The Mind and Heart of the Negotiator 5/e (Thompson) Inc. publishing as Prentice Hall
C. Negotiator’s surplus (Exhibit 3–2): Positive difference between the settlement outcome
and the negotiator’s reservation point; it indicates mixed-motive nature of negotiation
CHAPTER 3 3-4
Seller’s Surplus
Buyer’s Surplus
SR BR
$10 $15
Settlement
a)
CHAPTER 3 3-5
Pie-Slicing Strategies
• Strategy 1: Assess your BATNA and improve it
• Strategy 2: Determine your reservation point, but do not reveal it
• Strategy 3: Research the other party’s BATNA and estimate the reservation
point
• Strategy 4: Set high aspirations (be realistic, but optimistic)
• Strategy 5: Make the first offer (if you are prepared)
• Strategy 6: Immediately reanchor if the other party opens first
• Strategy 7: Plan your concessions
• Pattern, magnitude (GRIT model), and timing of concessions
• Strategy 8: Support your offers with facts
• Strategy 9: Appeal to norms of fairness
• Strategy 10: Do not fall for the “even split” ploy
E. Saving face
CHAPTER 3 3-6
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