Introduction | Strategy & Style | Terms | Interests vs. Positions | Tasks

MORE TERMS IN NEGOTIATION


Reservation Point The point at which the Best Alternative to a Negotiated Agreement (the BATNA) becomes preferable to starting or continuing a negotiation. In a sale - or in any negotiation - this is the point beyond which a party will not go.
Bargaining Range The distance between the reservation points of the parties. This range can be positive or negative. If it is negative there will be no settlement unless one or both the parties changes reservation points.

Expanding the Pie The process of adding elements to a negotiation which help one or both sides to gain more - a result from making negotiations more integrative. These are usually elements which are valued differently by each party and often they have the characteristic that one side will gain a little, give up nothing or suffer only a small loss in return for a great gain to the other. These elements can usually be added to almost any negotiation no matter how distributive the negotiation first appears to be.

Positions vs. Interests A position is what you say you want or must have. Positional bargaining is usually distributive - and may be inefficient in the sense that value may be left on the table at the time of settlement because each party did not know what the other really wanted - but it may help one party gain more short-term profit. An interest is both an objective or need and reasons why you want what you want. Interest-based bargaining add integrative potential.

Introduction | Strategy & Style | Terms | Interests vs. Positions | Tasks