Sometimes negotiators back themselves into a corner by taking a tough stance that brings talks to an impasse. In such cases, they are likely to view retreat as a sign of weakness – a surefire way of losing face. To move talks forward, you’ll need to help the other party make a graceful retreat, write
bargaining
Bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service dispute the price which will be paid and the exact nature of the transaction that will take place, and eventually come to an agreement. Bargaining is an alternative pricing strategy to fixed prices. Optimally, if it costs the retailer nothing to engage and allow bargaining, he can divine the buyer’s willingness to spend. It allows for capturing more consumer surplus as it allows price discrimination, a process whereby a seller can charge a higher price to one buyer who is more eager (by being richer or more desperate). Haggling has largely disappeared in parts of the world where the cost to haggle exceeds the gain to retailers for most common retail items. However, for expensive goods sold to uninformed buyers such as automobiles, bargaining can remain commonplace.
The following items are tagged bargaining.
Identify your negotiating style
Have you ever wondered if your negotiating style is too tough or too accommodating? Too cooperative or too selfish? You might strive for an ideal balance, but, chances are, your innate and learned tendencies will have a strong impact on how you negotiate. Wise negotiators seek to identify these tendencies and enhance them according to
In negotiation, does personality matter?
Imagine that after some negative experiences at the bargaining table, you’ve started to worry that you simply don’t have the right personality to be a great negotiator. The other party always seems to get the upper hand, and you can’t manage to come away with a favorable deal. What can you do to improve, or
Professor Robert Mnookin: Negotiation Strategy and Bargaining with the Devil
Success in negotiation, according to Professor Robert H. Mnookin, Chair of the Program on Negotiation, depends largely on being capable of managing each of the three tensions that he defines as being inevitable within almost any negotiation process. These include the tension between how to expand value and how to divide
Capitalize on negotiator differences
Adapted from “What Divides You May Unite You,” by James K. Sebenius (professor, Harvard Business School), first published in the Negotiation newsletter, July 2005.
Some years ago, an English property development firm had assembled most of the land outside London that it needed to build a large regional hospital. Yet a key parcel remained, and its
Let your reputation precede you
Adapted from “Want the Best Deal Possible? Cultivate a Cooperative Relationship,” by Catherine H. Tinsley (professor, Georgetown University) and Kathleen O’Connor (professor, Cornell University), first published in the Negotiation newsletter, December 2006.
In multi-issue negotiations, research suggests that the advantage goes to negotiators with a reputation for collaboration rather than competition. In a series of studies
Dealing with emotions during tough economic times
A major measure of the economy is the prevailing mood. A bleak job market and less-than-rosy economic outlook influence how we feel in an organization. Tighter budgets and increased layoffs are causes for concern, and many of us respond with “fight or flight” behavior. We defend our turf or avoid tense conversations in the hopes
Negotiating conflicts of interest
Adapted from “Fair Enough? An Ethical Fitness Quiz for Negotiators,” by Michael Wheeler (professor, Harvard Business School), first published in the Negotiation newsletter, March 2004.
Imagine that you’ve been negotiating the sale of a property that is owned by your company. The buyer has made an attractive offer that you’ve tentatively accepted. Your boss is pleased
Squeeze that orange
Many of us operate under the assumption that any given pie is fixed. More for me means less for you, right? Not necessarily. While you still want to claim your fair share, in many negotiation situations, there exist value-creating opportunities that can be exploited to provide “more pie” to both parties.
This counterintuitive approach is just
When women negotiators thrive
Adapted from “What Happens When Women Don’t Ask,” first published in the Negotiation newsletter, June 2008.
Some negotiation research has found that men generally initiate negotiations to advance their own interests much more often than women do. Yet researchers also have identified certain contexts in which women routinely negotiate and achieve outcomes that match or exceed
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