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2 Distributive Bargaining

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Chapter Summary

The two positions are diametrically opposed and in competition with one another. We tend to speak of a winner and a loser, although both partners might prefer to obtain an agreement, even if unbalanced, than to be without one at all. In distributive bargaining the size of the pie to be shared out is known from the outset and does not vary. The principle of integrative bargaining is simple in theory, but complicated in practice; since a number of issues are negotiated at the same time, both sides can win on some points and give way on others. The creativity and skill of the two partners in such a transaction ultimately determines the size of the pie to be shared. In an ideal world, each of them will get what is important to him, so that a good conclusion to a negotiation means that ultimately both sides win.

Keywords: distributive bargaining; integrative bargaining; negotiation

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