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.
A practical explanation of how to transition from a deal-maker mentality (focusing on making the agreement) to an implementation mindset (ensuring the deal generates value for your company after the ink on the contract has dried)
Business and Commercial Dispute Negotiation Role-Play:
Two-team, multi-issue employment contract negotiation between three teachers' union representatives and three school committee representatives; includes internal team meetings before external negotiations
Author(s): Marjorie Corman Aaron and JAMS/Endispute
Four-person mediation and/or arbitration of a personal injury claim, among plaintiff, plaintiff's lawyer, and counsel for defendant's insurance company; arbitrator roles include possible plaintiff or defense bias
Lawrence Susskind, Charles Hecksher, and Elaine Landry
Two-team, multi-issue collective bargaining contract negotiation between three union representatives and three management representatives for a telephone company; includes an internal team meeting before external negotiations
Five- or six-person mediation between manufacturing company management and a former employee (and their respective counsel) regarding the employee's departure amid allegations of sexual harassment; optional extra role for manager accused of harassment
Dan Delisi, under the supervision of Lawrence Susskind and Paul Levy
Six-person integrative negotiation among representatives of manufacturing company, occupational safety agency, union, local fire department, and local technical expert to settle claims of safety violations that allegedly caused two employee deaths
Eight-party, multi-issue negotiation among prison administrators, government leaders, criminal justice advocates, and prisoners' rights advocates to develop recommendations for a comprehensive state policy to alleviate prison overcrowding
This case study centers on the most challenging task for a negotiator: to reach a satisfactory agreement with a tough counterpart from a position of low power—and to do so in an uncommon context. The case concerns the executive director of a zoo in the U.S. who seeks two giant pandas, an endangered species, from their only source on the planet: China.
Prof. Susskind’s Top 5 Environmental Negotiation Teaching Materials
From time to time, the Teaching Negotiation Resource Center asks PON-affiliated faculty to nominate their top five books, top five teaching videos or top five role-play simulations in certain fields or teaching settings. These change periodically.