Distributive (Competitive) Bargaining
Distributive bargaining treats the resources at stake as fixed.
- Goal: Claim the largest possible share
- Mindset: “Win–lose,” zero-sum
- Tactics:
- Anchoring with extreme first offers
- Small, incremental concessions
- Withholding information
Integrative (Collaborative) Bargaining
Integrative bargaining seeks to expand value so both sides gain.
- Goal: Create a “win–win” outcome
- Mindset: Mutual problem-solving
- Tactics:
- Sharing interests, not positions
- Brainstorming multiple options
- Building trust and long-term relationships
The Five-Step Negotiation Process
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Preparation
- Define clear objectives and priorities
- Identify your Best Alternative to a Negotiated Agreement (BATNA)
- Research the other party’s needs and constraints
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Information Exchange
- Open with questions to understand interests
- Listen actively and take notes
- Clarify ambiguities before moving on
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Proposal & Bargaining
- Present your first offer strategically
- Use concessions to signal flexibility
- Seek trade-offs that create value
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Closure
- Summarize agreed points to confirm understanding
- Formalize terms in writing or contract
- Celebrate agreements to reinforce partnership
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Follow-Up
- Monitor implementation of commitments
- Address any unforeseen issues promptly
- Nurture the relationship for future negotiations
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