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 moral hazard

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 mediator

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 logrolling

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 litigation

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 legitimacy

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 ladder of inference

See “problem-solving approach”. … Read interest-based negotiation

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 interests

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 integrative negotiation

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