Lewicki, Saunders & Barry 2006
What is Negotiation?
Give- and take process
Context around the process
Win-lose (haggling over price at a yard sale)
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
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
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
Both parties influence and adjust to the
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