Integrative Bargaining Essay

5186 Words Feb 23rd, 2013 21 Pages
YOU CAN’T HAVE A BIGGER PIE, WITHOUT A BIGGER PAN; THE FORCES BEHIND INTEGRATIVE BARGAINING
By Joseph Brick

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ABSTRACT Integrative bargaining is a highly effective means of negotiating an agreement. However, it is also an underutilized method. Although there has been a recent focus on the topic in the past thirty years, the factors which deem it beneficial are still little understood. What this paper attempts to set forth is an explanation of why integrative bargaining is a successful and desirable method of negotiating. With a better understanding of why integrative bargaining is effective, negotiators may be better able to utilize this method to its full potential. This paper culminates with a suggestion on how to best exploit
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Distributive bargaining, also known as positional bargaining, is a negotiating process in which the parties view the resources as limited and therefore try to exploit the other party to gain by their loss. 1 This hard-nose style is bound to leave a bad taste in any negotiator’s mouth. There is however another way, which is gaining support. Integrative bargaining is the process by which the negotiating parties focus on interests and not positions, gathering information to find a mutually beneficial solution. 2 The resulting solution often “expands the
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pie” allowing greater gains by both parties. 3 Greater benefits for both parties are generally
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attributed with the attractiveness of this method. 4
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Integrative bargaining is not being driven by the sole desire to “expand the pie”. Indeed, most parties do not even fathom a larger pie upon commencement of negotiations. 5 Overlooked
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in the analysis of integrative bargaining are the notions of equity and the resultant stability that an earlier application of equity affords both of the negotiating parties. This paper suggests that these overlooked factors, in addition to the “expansion of the pie” concept are compelling the trend toward integrative bargaining.

Daniel R.Krause et al., Bargaining Stances and Outcomes in Buyer-Seller Negotiation:

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