Concessions in a Negotiation - Explained
How are Concessions Used?
Written by J. Mance Gordon
Updated at April 22nd, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What are concessions or adjustments of the bargaining position?
A dependent party's ability to secure her interests or achieve her objectives in a negotiation depends upon the willingness of the other party to assent to her position (beliefs, principles, desires, demands, etc.).
That is, the other party must give in somewhat for the parties to arrive at an agreement. In an interdependent relationship, each party negotiates with the expectation that the other party will adjust her position to accommodate the position of the other party. Here, there must be some give and take by both parties to arrive at an agreement in the negotiation.
A party's adjustment of her position in the negotiation is known as a concession. More specifically, a concession is an adjustment by one party in favor of the other party as a result of a tactic employed by the other party.
We will discuss tactics in a separate section, but tactic are methods of carrying out a strategy. A tactic is any method employed by a negotiator with the intent of influencing the other party.
Any adjustment in the negotiation or concession is done with the purpose of bringing the parties within the zone of potential agreement (ZOPA). As such, ones willingness to adjust her position affects the outcome and results of the negotiation.
Related Topics
- What is negotiation?
- What scenarios or situations lead to a negotiation or cause parties to negotiate?
- What characteristics are common to all negotiations?
- What are the differences among negotiators that affect the negotiation process?
- What is a conflict and how does it give rise to negotiation?
- How is a negotiators disposition toward conflict resolution related to negotiation strategy?
- What is the level of dependence in a conflict negotiation?
- What are integrative, distributive, and compatible bargaining scenarios?
- What is the BATNA and what is the significance of alternatives in negotiation?
- What is the significance of the reservation point and ZOPA in a negotiation?
- What is the significance of concessions or adjustment of the bargaining position?
- What are anchor points and the bargaining range in a negotiation?
- What personal and situational factors are commonly understood to affect negotiation?