Page 189 - DMGT519_Conflict Management and Negotiation Skills

Amit Kumar Sharma, Lovely Professional University Unit 9: Distributive Bargaining

Unit 9: Distributive Bargaining Notes

CONTENTS
Objectives
Introduction

9.1 Negotiation Skills
9.2 Classic Distributive Bargaining Situation
9.3 Opening Offers

9.4 Bracketing
9.5 The Role of Norms
9.6 Relational Norm
9.7 Fairness Norm
9.8 Reciprocity Norm

9.9 Good Faith Bargaining
9.10 Final Negotiated Price
9.11 Summary

9.12 Keywords
9.13 Review Questions
9.14 Further Readings

Objectives

After studying this unit, you will be able to:

 Define and Explain the meaning of distributive bargaining
 Discuss about negotiation skills
 Study the characteristics of classical distributive bargaining situation.

 Describe about bracketing
Introduction

Why is it necessary for all negotiators to be prepared to use and/or respond to distributive
bargaining tactics? The basic reason is that, for many novice as well as some experienced
negotiators, distributive bargaining is the heart of negotiation. For them, the word negotiation
brings to mind the classic car-buying situation: a single-deal negotiation in which only one
issue (price) is key, and both sides view the transaction as a zero-sum game. Thus, many
negotiators will view any situation as distributive and therefore will use distributive strategies
and tactics, even though it may not best serve their long-term interests. In general, the distributive
bargaining model is identified by three components: (1) the parties involved view each other as
adversaries; (2) the objective of both parties is to maximize their self-interest or their “share of the
pie”; and (3) they are only concerned about the current negotiation, interacting with each other as
though they have no past relationship and expect no future relationship—and thus are willing

LOVELY PROFESSIONAL UNIVERSITY 183