MGT 365 Lecture 15: Distributive Bargaining Process Continued

• School: Pace University
• Department: Management
• Course: MGT 365
• Professor: Richardson

Document Summary

Negotiators" starting & resistance points are usually arranged in reverse order: buyer has high price, seller has low price. Bargaining/settlement range: spread between resistance points, area that actual bargaining takes place, anything outside these points will be summarily rejected by one of the two negotiators. Also called zone of potential agreement is minimally willing to sell for. Positive bargaining range: when buyer"s resistance point is above seller"s, they"re minimally willing to pay more than other. Negative bargaining range: seller"s resistance point is above buyer"s & buyer won"t pay more than seller will minimally accept. It"s often difficult to know whether a positive settlement range exists until: b/c negotiators don"t begin deliberations by talking about resistance. Both parties may realize there"s no overlap in resistance points only after protracted negotiations have been exhausted. points: they"ll have to decide whether to end negotiations or reevaluate resistance points.