The Nature of
Negotiation
Plan
Get acquainted
Define basic concepts
(conflict, decision making, conflict
management, negotiations,
personality, etc.)
Non-contact game + debrief
1
What is conflict?
Examples
Definition of conflict
Coombs & Avrunin: 3 types of conflict:
Type I -- within individual
(Ex., which car or restaurant to choose)
Type II -- between individuals who want different
things but have to settle for the same (Ex.,
husband and wife buying a house, labor and
management negotiating an agreement, countries
disputing a boundary)
Type III -- between individuals who want the same
thing but have to settle for different ones. (Ex.,
professional sports)
Folger: interaction of interdependent people
who perceive incompatible goals and interference from
each other in achieving those goals (Type II).
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2
Conflict is
Good or bad?
Dependent on what?
Conflict is
Dependent on
its context
(what is that? examples)
people:
Do people behave the same/differently
in different context?
Does it matter who is involved,
how much they know, etc.?
Does culture matter?
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3
Conflict management is informed
By several disciplines
Psychology
Decision theory
Organizational behavior
Group theories
Game theory
Economics
Negotiation theories
Public decision making
Perspectives on conflict
psychodynamic experimental gaming
(Freud): research (Pruitt, Thibaut):
reality principle, id, social exchange,
pleasure principle, perceptions, exchange
aggressive impulse of resources
anxiety (Von Neumann,
Morgenstern, Shubik);
field theory and prisoners' dilemma
the concept of
human relations
climate
(Kurt Lewin, Deutsch) perspective,
perspective
conflict styles
(Blake & Mouton)
4
Negotiations purposes
Bargaining:
Bargaining:
refers to competitive,
win-lose (fixed-pie, fixed-sum)
situations
Negotiation:
refers to situations with win-win potential
(as when parties try to find a mutually
acceptable solution to a complex conflict)
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5
Three Important Themes
Characteristics of a
Negotiation Situation
Two or more parties
A conflict of needs and desires
between the parties, who
negotiate because
they think they can get a better deal than
by simply accepting
what the other side offers them or
by other means (which?)
expect a give
give and take
take process
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Characteristics of a
Negotiation Situation (cont.)
Fight openly
Capitulate
Break off contact permanently
Take their dispute to a third party for
judgment
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6
Characteristics of a
Negotiation Situation (cont.)
Successful negotiation involves:
Management of tangibles
(e.g., the price or
the terms of agreement)
Resolution of intangibles
(the underlying psychological
motivations) such as
winning, losing, saving face
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Characteristics of a
Negotiation Situation (cont.)
Incentives structure:
One issue (payoff or dimension)
Win-lose, zero-sum, or distributive:
I win, you necessarily lose
Several issues (payoffs or
dimensions)
Win-win, non-zero-sum, or
integrative:
Opportunities for both parties to gain
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Interdependence
Parties need each other to achieve their
preferred outcomes or objectives
Interdependent parties have interlocking
goals (interests), but:
not everyone wants
or needs exactly interdependent
the same things relationships have
mix of convergent and
conflicting interests
( mixed motive)
motive