Negotiation Skills: Expanding the Pie – Integrative Bargaining versus Distributive Bargaining

Integrative Bargaining Builds Goodwill and Trust

By on / Negotiation Skills

Imagine that you are buying a used car from its original owner. Of course, you want to get the best deal you can for your money, while your counterpart wants to maximize the value of his asset. After haggling with one another, each side finally arrives at a price point acceptable to both parties.

The above scenario is common in many transactional negotiations: you play your cards close and share as little information as needed to achieve the end goal.

Michael Wheeler, Harvard Business School and Program on Negotiation at Harvard Law School faculty member, asks us to imagine a different scenario, one in which both parties reveal their interests at the onset of a negotiation.

A recent article by Katie Johnston for Harvard Business School, “The Art of Haggling,” describes the difference between distributive bargaining and integrative bargaining. Getting to YES, the seminal work from Harvard Law School professor and Program on Negotiation founder Roger Fisher. Co-authored with Harvard Negotiation Project Senior Fellow and Program on Negotiation cofounder William Ury, Getting to YES advocates for integrative bargaining. In integrative bargaining, each side seeks to create an agreement beneficial to both parties.

The integrative approach is what is taught in most professional schools. Professor Wheeler emphasizes that situations that initially look like win-lose negotiations can often be turned into opportunities for mutual gain and value creation.

Of course, the integrative approach has its limits, and Wheeler notes that the art of negotiation lies in simultaneously creating and claiming value or “riding two different horses at the same time.”

Negotiators are often cautious about revealing too much information but integrative bargaining explicitly relies upon revealing preferences and interests. As Professor Wheeler cautions, “Sometimes getting 70 percent of the small pie might be better than getting 50 percent of a marginally larger one.” The emphasis on relationship building marks integrative bargaining’s approach as being oriented toward a long-term vision for future negotiations with your counterpart.

Related Articles: International Negotiations – A Game of Chess, or Marbles?: Russian President Vladimir Putin’s negotiation style has isolated him from his neighbors in Europe. Are his tactics part of a larger strategy in Europe or is he merely improvising as he goes along? Are some of Putin’s tactics useful to negotiators looking to create and claim value at the bargaining table? This article explores this ongoing international negotiation challenge and offers negotiation skills insights.

Adaptability at the Bargaining Table – How Improvisation and Jazz Music Inform Negotiation Strategy: Hard bargaining negotiation strategies may seem appealing but Program on Negotiation faculty member Michael Wheeler argues that adaptability to ever-changing circumstances is essential for the negotiations one encounters in daily life. In his latest book, The Art of Negotiation, Michael Wheeler researched negotiations from a random, chaotic perspective, “I had this bug in my head that it’s all well and good in terms of decision trees and probabilities and so forth, but the fact of the matter is everyday transactions cannot be scripted or even necessarily predicted.” Read this article to learn more about Michael Wheeler’s insights into the nature of everyday negotiations and how the skilled negotiator can benefit from a bit of improv in the negotiations.

First posted June 12, 2012.

Learn how to negotiate like a diplomat, think on your feet like an improv performer, and master job offer negotiation like a professional athlete when you download a FREE copy of Negotiation Skills: Negotiation Strategies and Negotiation Techniques to Help You Become a Better Negotiator.

Related Posts:

One Response to “Negotiation Skills: Expanding the Pie – Integrative Bargaining versus Distributive Bargaining

  1. William /

    I enjoyed this idea and form of negotiation very much. I think the only people that would have a problem with this would be greedy. The "pie" is huge, there is certainly enough for everyone to get a fair share that pleases them. Reply

Leave a Comment