Summary of chapter 2
1The Distributive Bargaining Situation
In a distributive bargaining situation, the goals of one party are usually in fundamental and direct conflict with the goals of other party. Resources are fixed and limited, and parties want to maximize their share. Distributive Bargaining is basically a competition over who is going to get the most of a limited resource, which is often money.
1.1Definition
Starting point: the point in the opening statements each party makes (the ller’s listing price and the buyer’s first offer).
Target point: the point at which a negotiator would like to conclude negotiations——his optimal goal. ——negotiator’s aspiration
Resistance point/rervation price: the point beyond which a person will not go and would rather break off negotiations, is not known to the other party and should be kept cret. ——the bottom line-the most the buyer will pay or the least the ller will ttle for.
Asking price: the initial price t by the ller
Both parties to a negotiation should establish their starting, target, and resistance points before beginning a negotiation. The partier’s starting and resistance points are usually arranged in rever order, with the resistance point being a high price for the buyer and a low price for the ller.
二月 英文Bargaining range/ttlement range/zone of potential agreement: the spread between the resistance point.
⚫Positive bargaining range: when the buyer’s resistance point is above the ller’s——the buyer is minimally willing to pay more than the ller is
minimally willing to ll for.
⚫Negative bargaining range: the ller’s resistance point is above the buyer’s ——the buyer won’t pay more than the ller will minimally accept.
1.2Settlement Point:
The objective of both parties is to reach an agreement as clo to the other party’s resistant point as possible.
⚫Within a positive bargaining range
⚫Both parties must believe that the ttlement is the best they can get.
⚫Another factor will affect the satisfaction with the agreement is whether the parties will e each other again.
1.3Bargaining Mix
The package of issues for negotiation is bargaining mix. Each item in the mix has its own starting, target, and resistance point. Such as the price/ the closing date of the sale/ renovations to the condo/ the price of items that could remain in the condo Negotiators need to understand what is important to them and to the other party, and they need to take the priorities into account during the planning process.
1.4Fundamental Strategies
1.4.1Discovering the other party’s resistance pointcondchance
The more you can learn about the other party’s target, resistance point, motives, feelings of confidence, and so on, the more able you will be to strike a favorable agreement.
To influence the other party’s perception, however, they must establish some points effectively and convincingly.
1.4.2Influencing the other party’ s resistance point
Factors are important in attempting to influence the other party’s resistance point:
(1) the value the other attaches to a particular outcome
(2) the cost the other attaches to delay or difficulty in negotiations
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(3) the cost the other attaches to having the negotiation aborted.
A significant factor in shaping the other person’s understanding of what is possible is the other’s understanding of your own situation.
1.4.3Propositions:
1. The higher the other party’s estimate of your cost of delay or impas, the stronger the other party’s resistance point will be.
2. The higher the other party’s estimate of his or her own cost of delay or impas, the weaker the other party’s resistance point will be.
3. The less the other values an issue, the lower their resistance point will be.
4. The more the other believes that you value an issue, the lower their resistance point may be.
Ca:
In the condo example, the buyer has four fundamental strategies available:
(1) To push for a ttlement clo to the ller’s resistance point. $ 130,000
(2) To convince the ller to change her resistance point.
(3) If a negative ttlement range exists, to convince the ller to reduce her resistance point.
(4) To convince the ller to believe that this ttlement is the best that is possible.
2Tactical Tasks
There are four important tactical tasks for a negotiator in a distributive bargaining situation to consider:
2.1Asss the other party’s target, resistance point, and cost of terminating negotiation.
The negotiator can pursue two general routes to achieve this task:
⚫Obtain information indirectly about the background factors behind an issue (indirect asssment).
⚫Obtain information directly from the other party about their target and
helmsmanresistance point (direct asssment) .
2.2Manage the other party’s impressions of a negotiator’s target, resistance point, and cost of terminating negotiation.
An important tactical task for negotiators is to control the information nt to the other party about your target and resistance points, while simultaneously guiding him or her to form a preferred impression of them.
Negotiators need to screen information about their positions and to reprent them as they would like the other to believe them.
⚫Screening Activities.
跳舞的英文The simplest way to screen a position is to say and do as little as possible. “Silence is gold.”
Another approach, available when group negotiations are conducted through a reprentative is calculated incompetence.
Reduce the number of people who can actively reveal information.
Prent a great many items for negotiations only a few of which are truly important to the prenter.
⚫Direct Action to Alter Impressions.
Many actions can be taken to prent facts that will that will enhance their position or make it appear stronger to the other party.
Negotiators should justify their positions and desired outcomes in order to influence the other party’s impressions.
Displaying emotional reaction to facts, proposals, and possible outcomes is another form of direct action.
Taking direct action to alter another’s impression rais veral potential hazards.
2.3Modify the other party’s perceptions of his own target, resistance point, and cost of terminating negotiation.
⚫Interpret for the other party what the outcomes of his or her proposal will be.
⚫Conceal information.
2.4Manipulate the other party’s actual cost of delaying or terminating negotiation.
(1) Disruptive Action. Increa the cost of not reaching a negotiated agreement.
(2) Alliance with Outsiders. Involve the other parties who can somehow influence the outcomes in the process.
(3) Schedule Manipulation. The negotiation scheduling process can often put one party at a consider
able disadvantage. The opportunities to increa or alter the timing of negotiation vary widely across negotiation domain.
3Position Taken during Negotiation
Effective distributive bargainers need to understand the process of making
positions during bargaining, including the importance of opening offer, opening stance, and the role of making concessions throughout the negotiation process.
3.1Opening Offers
The fundamental question is whether the opening offer should be exaggerated or modest.
There are at least two reasons that an exaggerated opening offer is advantageous.
Two disadvantageous of exaggerated opening offer are:
(1) It maybe summarily rejected by the other party
(2) it communicates an attitude of toughness that maybe harmful to long-term relationships.
3.2Opening Stance
Will you be competitive or moderate? It is important for negotiators to think carefully about the messages that the wish to signal with their opening stance and subquent concessions. To communicate effectively, a negotiator should try to nd
a consistent messages through both opening offer and stance.
3.3Initial Concessions
First concession conveys a message, frequently a symbolic one to the other party that how you will proceed.
Firmness may actually shorten negotiations, there is also the very real possibility, however, it will be reciprocated by the other.
There are good reasons for adopting a flexible position.
3.4Role of Concessions
Concessions are central to negotiation. Negotiators also generally rent a take-it-or-leave-it approach. Parties feel better about a ttlement when the negotiation involved a progression of concession. A reciprocal concession cannot be haphazard.
To encourage further concession from the other party, negotiators sometimes link their concessions to a prior concession made by the other party.
3.5Final Offers
A negotiator might simply let the abnce of any further concessions that convey the message in spite of urging the other party.
One way negotiators may convey the message that an offer is the one is to make the last concession more substantial.
4Commitment
4.1Establishing a Commitment
hydrogenatedA commitment statement has three properties: a high degree of finality, a
high degree of specificity, and a clear statement of conquences.
Several ways to create a commitment:
⚫public pronouncement
⚫linking with an outside ba
⚫increa the prominence of demands
⚫reinforce the threat or promicreate account
4.2Preventing the other party from committing prematurely
One way to prevent the other party from establishing a committed position is to deny his or her the necessary time.
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Another approach is to ignore or downplay a threat by not acknowledging the other party’s commitment, or even by making a joke about it.
There are times, however, when itis to a negotiator’s advantageous for the other party become com
mitted.
4.3Finding ways to abandon a committed position
Four avenues for escaping commitment:
⚫Play a way out
⚫Let it die silently
⚫Restate the commitment
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⚫Minimize the damage
A commitment position is a powerful tool in negotiation, it is also a rigid tool and must therefore be ud with care.
5Closing the deal
Several tactics are available to negotiators for closing a deal:
⚫Provide alternatives
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⚫Assume the clo
⚫Split the differences
⚫Exploding the offers
⚫Sweeteners
6Hardball Tactics
Such tactics are designed to pressure negotiators to do things they would not, otherwi do, and their prence usually disguis the ur’s adherence to a decidedly distributive bargaining approach.
6.1Tactics 1
How best to respond to a tactic depends on your goals and the broader context of the negotiation.
Four main options that negotiators have for responding to typical hardball tactics:
⚫lgnore them
⚫Discuss them
⚫Respond in kind
⚫Co-opt the other party
6.2Tactics 2
Bogey
