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INChap002 - Strategy and Tactics of Distributive Bargaining
INChap002 - Strategy and Tactics of Distributive Bargaining
Alternative
Initial Offer Target Point Walkaway Point
Party B - Buyer
McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved
2-5
Fundamental Strategies
• Push for settlement near opponent’s resistance
point
• If settlement range is negative, either:
– Get the other side to change their resistance point
– Modify your own resistance point
• Convince the other party that the settlement is
the best possible
Positions Taken
During Negotiations
• Opening offer
– Where will you start?
• Opening stance
– What is your attitude?
• Competitive? Moderate?
• Initial concessions
– Should any be made? If so, how large?
Positions Taken
During Negotiations
• The role of concessions
– Without them, there is either capitulation or
deadlock
• Patterns of concession making
– The pattern contains valuable information
• Final offer (making a commitment)
– “This is all I can do”
Commitments:
Tactical Considerations
• Establishing a commitment
– Three properties:
• Finality
• Specificity
• Consequences
• Preventing the other party from committing
prematurely
– Their commitment reduces your flexibility
Commitments:
Tactical Considerations
• Ways to abandon a committed position
– Plan a way out
– Let it die silently
– Restate the commitment in more general terms
– Minimize the damage to the relationship if the
other backs off
Summary
Negotiators need to:
• Set a clear target and resistance points
• Understand and work to improve their BATNA
• Start with good opening offer
• Make appropriate concessions
• Manage the commitment process