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CHAPTER TWO
Strategy and Tactics of Distributive Bargaining
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Walkaway Point
Target Point
Asking Price
Initial Offer
Party B - Buyer
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Target Point
Walkaway Point
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Asking Price
Initial Offer
Party B - Buyer
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Fundamental Strategies
Push for settlement near opponents resistance point Get the other party to change their resistance point If settlement range is negative, either:
Get the other side to change their resistance point Modify your own resistance point
Convince the other party that the settlement is the best possible
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Assess Outcome Values and the Costs of Termination for the Other Party
Indirectly
Determine information opponent used to set:
Target Resistance points
Directly
Opponent reveals the information
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Schedule manipulations
One party is usually more vulnerable to delaying than the other
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Opening stance
What is your attitude?
Competitive? Moderate?
Initial concessions
Should any be made? If so, how large?
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Summary
Negotiators need to: Set a clear target and resistance points Understand and work to improve their BATNA Start with good opening offer Make appropriate concessions Manage the commitment process
McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc., All Rights Reserved