Discussion 1-2by Sahithi Sri Peddi – Saturday, 25 August 2018, 12:58 AM
The strategies and tactics of distributive bargaining are what negotiation is all about. Others are repelled by distributive bargaining and would rather walk away than negotiate this way they argue that distributive bargaining is old fashioned, needlessly, confrontational and destructive.
There are three reasons that every negotiator should be familiar with Distributive Bargaining. First, negotiators face some interdependent situations, that are distributive, and to do well in them, they need to understand how they work. Second, because many people use Distributive Bargaining strategies and tactics almost exclusively, all negotiators need to understand how to counter their effects. Third, every negotiate situation has the potential to require Distributive Bargaining skills when at the “claiming value” stage.
Understanding Distributive Bargaining strategies and tactics is important and useful, but negotiators need to recognize that these tactics can also be counterproductive and costly. Often they cause negotiating parties to focus so much on their differences that they ignore what they have in common.
These negative effects notwithstanding, Distributive Bargaining strategies and tactics are quite useful when a negotiator wants to maximize the value obtained in a single deal, when the relationship with the other party is not important, and when they are at the claiming value stage negotiation. Before negotiation, both parties to a negotiation should establish their starting, target and resistance point. Starting points are often in the opening statements each party makes (i.e. the seller’s listing price and the buyer’s offer). The target point is usually learned or inferred as negotiations get under way. People typically give up the margin between their starting points and target points as they make concessions.
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