Module 1 What is Negotiation? Alternative Methods of Making Decisions



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Benefits of Bargaining


Negotiators have at least one common interest because the consequences of
non-agreement means acceptance of the status quo. The fact that they are willing to negotiate implies each believes something can be improved.

Maximizing joint gains as a bargaining objective. Cooperation must be present!


BENEFITS OF BARGAINING



A status quo

P’ utility of negotiator 1 (e.g. Paula)

P’’ maximum utility of Negotiator 1 (e.g. Paula)

Q’ utility of Negotiator 2 (e.g. Quirk)

Q’’ maximum utility of negotiator 1 (e.g. Quirk)

R P wins, Q static

S Q wins, P static

B,C,D win, win







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