Bargaining Bargaining is the process of negotiating from

Bargaining • Bargaining is the process of negotiating from a competitive orientation to maximize your outcomes. Critical aspects of bargaining include • • basic bargaining strategy components basic rules for bargaining process traditional influence strategies traditional information preparation guidelines Tricia S. Jones, Temple University, copyright protect, March 2006

Basic Bargaining Components • Target Point - “best possible outcome” • Resistance Point - “worst outcome you will accept and still settle” • Settlement Range - “difference between your target and resistance points” • Bargaining Range - “overlap (if any) between parties’ settlement ranges Tricia S. Jones, Temple University, copyright protect, March 2006

Bargaining Components XRP YTP XTP YRP Y’s settlement range X’s settlement range Bargaining range Tricia S. Jones, Temple University, copyright protect, March 2006

Basic Rules for Bargaining • • • Make extreme initial offers Make small concessions Expect and demand reciprocal concessions Package issues Use tradeoff issues Create giveaway issue Tricia S. Jones, Temple University, copyright protect, March 2006

Traditional Influence Strategies • Convince the other party their resistance point is unrealistic • Convince the other party their target point is unrealistic • Convince the other party your resistance point is realistic • Convince the other party your target point is realistic Tricia S. Jones, Temple University, copyright protect, March 2006

Information You Should Have • Know about the people involved – background? – familiarity with bargaining? – experience in bargaining? – expectations for the process? – history between the parties? Tricia S. Jones, Temple University, copyright protect, March 2006

Information You Should Have • Know about the Interests involved – theirs? – yours? – common interests? – third party interests? Tricia S. Jones, Temple University, copyright protect, March 2006

Information You Should Have • Know the Facts of the Dispute – what facts are not in dispute? – what facts are in dispute? – what source of evidence is best? – who has authoritative voice on evidence? – how is evidence best presented? Tricia S. Jones, Temple University, copyright protect, March 2006