Zero sum or distributive situation i

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Lewicki, Saunders & Barry 2006
            What is Negotiation?
   Negotiation:
     Win-Win Situations
     Give- and take process
     Context around the process

   Bargaining
       Win-lose (haggling over price at a yard sale)
            Why Negotiate?
1.   To agree how to share or divide a limited
     resource such as land, property or time.
2.   To create something new that neither
     party could do on his or her own.
3.   To resolve a problem or dispute between
     the parties.
    Characteristics of a Negotiation
 Two or more parties
 Conflict of needs and desires
 Parties negotiate by choice
 Expect a “give and take” process.
 Parties prefer to invent their own solutions
 Management of tangibles and intangibles
   When parties depend on each other to
    achieve their own preferred outcome they
    are interdependent.
       Zero-sum or distributive situation
          i.e.,   basketball game
       Non-zero-sum or integrative
          i.e.,   composer and writer creating a musical
   BATNA = Best Alternative to a Negotiated
       Important to understand your own and the
        other parties
               Mutual Adjustment
   Both parties influence and adjust to the
    other parties.
       Two dilemmas:
          Dilemma   of honesty: how much of the truth to tell
           the other party
          Dilemma of trust: How much should negotiators
           believe what the other party tells them
       Mutual concessions are important/expected
    Value Claiming and Creation
 Value claim: distributive bargaining (win-
 Value creation: Integrative negotiation
 Most negotiations are a combination
     Recognize what the situation calls for.
     Be comfortable and versatile in both
     Tend to have a bias towards perceptions of
       How to create value?
 Value is created by exploiting
 differences between negotiators.
   Differences in interests.
   Differences in judgments about the future.
   Differences in risk tolerance.
   Differences in time preference.
    When you shouldn’t negotiate.
 When you could lose the farm.
 When you’re sold out (running at capacity)
 When the demands are unethical
 When you don’t care
 When you don’t have time
 When they act in bad faith
 When waiting would improve your position
 When you’re not prepared

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