moral hazard

PON Staff   •  02/17/2009   •  Filed in Glossary

A problem created when a contract shifts risk from one party to another party and information asymmetries permit the non-riskbearer to behave adversely under the contract without detection or consequence. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 26) … Read More 

mediator

PON Staff   •  02/17/2009   •  Filed in Glossary

An impartial, mutually acceptable third party whose goal is to help conflicted parties resolve their dispute. Mediators lack the power to coerce or bargain, but they can use facilitative power to influence disputants. (Michael Watkins and Susan Rosegrant, Breakthrough International Negotiations [Jossey-Bass, 2001], 93) … Read More 

logrolling

PON Staff   •  02/17/2009   •  Filed in Glossary

The act of trading across issues in a negotiation. Logrolling requires that a negotiator knows his or her own priorities, but also the priorities of the other side. If one side values something more than the other, they should be given it in exchange for reciprocity on issues that are a higher priority to their … Read More 

litigation

PON Staff   •  02/17/2009   •  Filed in Glossary

A formalized legal process to resolve a dispute through legal action in the form of a lawsuit. It often entails a contractual issue. It is the act of either bringing or challenging a lawsuit. (from www.negotiations.com/definition) … Read More 

legitimacy

PON Staff   •  02/17/2009   •  Filed in Glossary

A feeling of being treated fairly in a negotiation. Often an interest in legitimacy and feeling fairly treated is the main driver in a dispute. However, parties with differing views on what is fair may fail to realize that beneath their conflicting positions is the same underlying interest. For example, in the Israeli-Palestinian conflict, the … Read More 

ladder of inference

PON Staff   •  02/17/2009   •  Filed in Glossary

A model that describes how individuals reach conclusions and make decisions based on facts. The model states that individuals move from observable data and experiences to selected “data,” added meanings, assumptions from those selected data and meanings, conclusions that are drawn, beliefs from those conclusions, and actions based on those beliefs. (Peter M. Senge, Art … Read More 

interests

PON Staff   •  02/17/2009   •  Filed in Glossary

A party’s basic needs, wants, and motivations that are potentially at stake in a negotiation. The measure of success in a negotiation is how well your interests are met. (David A. Lax and James K. Sebenius, 3-D Negotiation [Harvard Business School Press, 2006], 69) … Read More 

integrative negotiation

PON Staff   •  02/17/2009   •  Filed in Glossary

Negotiations in which there is a potential for the parties’ interests to be integrated in ways that create joint value or enlarge the pie. Integrative negotiation is possible when the parties have some shared interests or opportunities to realize mutual gains through trades across multiple issues. (Michael Watkins and Susan Rosegrant, Breakthrough International Negotiations [Jossey-Bass, … Read More 

information asymmetry

PON Staff   •  02/17/2009   •  Filed in Glossary

A situation in which one party has more information than the other. (Richard Luecke, Harvard Business Essentials: Negotiation [Harvard Business Press, 2003], 128) … Read More 

Would you like us to inform you when new posts become available?

We hate spam as much as you do. You have our promise not to sell or share your email address — ever! Please read our privacy policy.