1. Distributive and Integrative Negotiations

Distributive and Integrative Negotiations


A“____________ is a situation in which interests or objectives of the parties are the same and are mutually exclusive.

The distributive negotiation is generally NOT very competitive (a win-lose situation) and does foster cooperative behavior. True or False

Any value claimed by one party in a distributive negotiation is at the expense of the other party. True or False

Identify the steps to undertake an integrative bargaining situation.

Benefits - Determine the interest or benefit at stake.

  • BATNA - Assess your BATNA (and seek to improve it).
  • RP - Determine your reservation point (do not reveal it).
  • Other’s BATNA & RP - Research the counterparty’s BATNA and estimate her reservation point
  • TP - Determine your target point (be realistic, but optimistic)
  • Strategy & Objectives - Assess your strategic position and objectives:
  • Open - Make the first offer
  • Concessions - Make your concessions
  • Final Offer - Make Final Offers

Resource: https://thebusinessprofessor.com/knowledge-base/best-practices-in-distributive-negotiation/

________________ (also known as cooperative, collaborative, win-win, mutual gains, or problem solving) involves a scenario where the interests or objectives of each negotiator is not mutually exclusive.

In an integrative negotiation there is NOT a finite amount or resources or there is opportunity for both parties to simultaneously improve or further their position by negotiating.

An integrative negotiation does necessarily mean that there will be a compromise, even split, satisfaction, or furtherance of a relationship between the parties.

What are the level(s) of integrative, or win-win, agreements?

Agreements that exceed each parties’ no-agreement possibilities or reservation points.

  • Agreements that are better for both parties than other feasible negotiated agreements (situation is not purely fixed-sum).
  • Agreements that are impossible to improve on from the perspective of both parties (along pareto-optimal frontier of agreement)

Resource Video: https://thebusinessprofessor.com/knowledge-base/what-is-an-integrative-negotiation/

An outcome on the ________ results when there would be “no agreement that would make any party better off without decreasing the outcomes to any other party.”

A ____________ is one that all parties share equally, each one benefiting in a way that would not be possible if they did not work together.

A __________ is one that both parties work toward but that benefits each party differently.

A ________ is one that involves individuals with different personal goals agreeing to combine them in a collective effort.

Confidence in ____________ facilitates an integrative negotiation.

Problem-solving ability

  • Personal Position
  • Other Party’s position

Resource Video: https://thebusinessprofessor.com/knowledge-base/personal-characteristics-facilitate-integrative-negotiations/

For integrative negotiation to succeed, the parties must be motivated to compete rather than collaborate. True or False

_____________ Are commitments between the parties before the negotiations begin.

Generating trust is a complex, uncertain process that depends in part on how the parties behave and in part on the parties’ personal characteristics. True or False.

Negotiators should NOT be willing to share information about themselves, for example, revealing what they want and why. True or False.