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Split the pie!

What is the
pie?
Bargaining Vs Negotiating

Bargaining Vs Joint-problem-solving
BEING ALLOCENTRIC -- THAT WHAT HAPPENS IF THIS WHAT ARE WE LOSING? WHAT ARE WE/OTHERS DO NEGOTIATIONS HAVE TO
IS, UNDERSTANDING THE NEGOTIATION FAILS? EXACTLY LOOKING FOR IN BE 50-50 WINS?
OBJECTIVES OF THE OTHER THE NEGOTIATION?
PARTY
BEING ALLOCENTRIC -- THAT IS, UNDERSTANDING THE
OBJECTIVES OF THE OTHER PARTY

WHAT HAPPENS IF THIS NEGOTIATION FAILS?

WHAT ARE WE LOSING?

WHAT ARE WE/OTHERS EXACTLY LOOKING FOR IN THE


NEGOTIATION?

DO NEGOTIATIONS HAVE TO BE 50-50 WINS?


• start with the principle first, get agreement on what the pie is, and
only then propose the number.
• The pie is how much more the two parties can create by working
together compared to what they can create without an agreement.
• The pie is how much more two parties, A and B, can achieve by
working together than they can get if they don't reach an agreement.
• In more technical terms, The pie = net benefit from working together –
(A’s net benefit on its own + B’s net benefit on its own) where net
benefit is the benefit leftover after costs.

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