HRM 4495 Lecture Notes - Lecture 2: Nibble
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Target point: point at which the negotiator would like to conclude negotiations. Resistance point: the point where the negotiator is indifferent to a deal (bottom line) Bargaining zone: the space b/w the resistance point of each negotiator. The primary objective of distributive bargaining is to maximize the value of the current deal. To push for a settlement close to the seller"s (unknown) resistance point; yielding the largest part of the settlement range. To convince the seller to change his/her resistance point by influencing the seller"s beliefs about the value of the unit. If a negative settlement range exists, convince the seller to reduce her/his resistance point to create a positive settlement range. To convince the seller to believe that this settlement is the best that is possible. Learning more about the o. p"s target, resistance point, motives, feelings of confidence. If both sides strategically misrepresent their value tradeoffs, then inefficient contracts will often result. (raiffa)