Negotiation Strategies Overview

Study Notes

Types of Negotiations:
- Integrative: Multiple issues, win-win, value creation. Focuses on interests, not positions.
- Distributive: Single issue, win-lose, fixed-sum (fixed pie), conflict of interest.
Building Integrative Agreements:
- Build trust.
- Ask questions.
- Share information.
- Meso- make simultaneous offers.
- Search for post-settlement settlements.
Maximizing Joint Value:
- Maximize congruent aspects.
- Trade off integrative aspects.
- Compromise on distributive aspects.
BATNA (Best Alternative To a Negotiated Agreement):
- Standard for evaluating proposed agreements.
- Prevents unfavorable terms.
- Know your BATNA and estimate counterpart's BATNA (often hidden).
- Understand outcomes if no agreement is reached.

Interests vs. Positions: Distinguish what someone wants (position) from why they want it (interest). Negotiate interests, not positions.
Value Creation: Grow the pie (expand the total value) before claiming a slice.
ZOPA (Zone of Possible Agreement):
- Area where agreement may occur.
- More issues = more complex.
- Assign points to issues based on value.
- Involves Buyer and Seller BATNAs and Target prices.
- Walkaway point (0,0) on graph.
- Zopa appears in Top-right quadrant of the graph.
- Grow the pie before claiming value. (Move north from walkaway).
- Avoid offers below your BATNA.
Negotiation Mistakes:
- Assuming a fixed pie.
- Lack of planning and information.
- Irrational escalation of commitment.
- Overconfidence.
- Misframing.
Logrolling and Coalitions:
- Logrolling: Leverage uncommon interests through trading favors on issues parties are indifferent to.
- Coalitions: Groups of people unifying under a central voice.
- Compromise coalitions: Middle ground between opposing sides.