RPS 6100 Chapters 2 & 3


Target Point

The point at which the negotiator would like to conclude negotiations.

Bargaining Zone

The space between the resistance points of each negotiator.

Starting Point

The point at which negotiation commences. Often included in the opening statement each party makes.

Resistance Point

A negotiator's bottom line, or the point at which they are indifferent to a deal.

Objective of Distributive Negotiation

The objective of negotiation is to reach an agreement as close as possible to the other party's resistance point.

Positive Bargaining Zone

When the buyer's resistance point is above the seller's.

Negative Bargaining Zone

When the seller's resistance point is above the buyer's.

Benefits of a strong Best Alternative to Negotiated Agreement (BATNA)

Provides a negotiator with more power in the current negotiation. Clarifies what the negotiator will do if an agreement cannot be reached.

Settlement Point

The point at which negotiation finalizes. Often included in the terms of the agreement.

Strategies to Maximize the Value of the Deal

1. Push for a settlement closest to the other party's resistance point
2. Convince the other party to change her resistance point by influencing her beliefs about the value of the unit
3. If a negative settlement range exists, convince the other party to

How to Discover the Other Party's Resistance Point

Learn as much as possible about the other party's target, resistance point, motives, confidence, etc.

Influencing the Other Party's Resistance Point

1. The higher the other party's estimate of your cost of impasse, the stronger the other party's resistance point will be.
2. The higher the other party's estimate of her cost of impasse, the weaker the other party's resistance point will be.
3. The less

Tactical Tasks to Assess Target Points, Resistance Points, and Cost of Termination

Indirect Assessment and Direct Assessment

Indirect Assessment

Obtain information indirectly about the background factors behind an issue. For example, when purchasing a car the buyer could research inventory levels at a car dealership, market reports of vehicle value, gas mileage.

Direct Assessment

Obtain information directly from the other party about their target and resistance point. For example, when purchasing a car the buyer could directly ask the dealer the minimum price at which the dealership is willing to sell.

Tactical Tasks to Manage Impressions

Screening Activities and Direct Action to Alter Impressions

Screening Activities

Concealing as much information as possible from the other party. Common screening activities include silence, feigning disinterest, calculated incompetence, channeling communication through a spokesperson, or overwhelming the other party with irrelevant i

Direct Action to Alter Impressions

Presenting facts to enhance your position or make it seem stronger. Examples include selective presentation of facts and emotional reaction to the other party's proposal.

Tactical Tasks to Manipulate the Actual Cost of Delay or Termination

Disruptive Action, Alliance with Outsiders, and Schedule Manipulation

Disruptive Action

Actions such as boycotts or picket lines that increase the cost of not reaching a settlement by disrupting the regular operations of an organization..

Alliance with Outsiders

Bringing in other parties such as political action groups or protest organizations to bring greater collective pressure on the adversary.

Schedule Manipulation

Using time constraints to weaken the adversary's position. For example, offer a higher price to a client with an immediate need for your product and no alternatives.

Advantage of Making an Ambitious Opening Offer

Provides the negotiator with room for movement.

Advantage of Making an Ambitious Opening Offer

Creates a meta-message in the other party's mind that (1) there is a long way to go until a reasonable settlement will be achieved, (2) more concessions will need to be made, and (3) the other party may have incorrectly estimate her resistance point.

Disadvantages of Making an Ambitious Opening Offer

Ambitious offers can be summarily rejected or damage long-term relationships.

Anchoring Effect

The observation that people who make decisions under certain conditions are influenced by initial starting numbers.

Opening Stance Tactics

It is important for negotiators to think carefully about the message that they wish to signal because there is a tendency for the other party to respond in kind.

Initial Concessions

The first concession conveys a message, frequently a symbolic one, to the other party about how the negotiation will proceed.

Role of Concessions

Parties usually feel better about a negotiated settlement when the process involved a series of concessions. We want to believe that we are capable of shaping another's perceptions, that we have status, that our contributions are recognized.

Final Offer

the last offer presented as this is the point at which the negotiator can no longer make concessions to the other party.

Closing the Deal: Strategies

Provide Alternatives, Assume the Close, Split the Difference, Exploding Offers, Sweeteners

Provide Alternatives

Instead of a single final offer, two or three offers are presented, roughly equivalent in value.

Assume the Close

Behaviors and words indicating that the deal is about to close such as pulling out an order form, gathering information for a contract.

Split the Difference

Presenting an offer half way between the positions of both parties.

Exploding Offers

Coupling the offer with a tight deadline, typically done to convince the other party to accept the settlement and cease searching for alternatives.


A special concession contingent on closing the deal now. For example, including a free set of sunglasses along with the purchase of a Corvette.

Hardball Tactics

Good Cop / Bad Cop, Lowball / Highball, Bogey, The Nibble, Intimidation, Aggressive Behavior, Snow Job

Good Cop / Bad Cop

Two negotiators on a team. One negotiator takes a tough opening position, with threats and obnoxious behavior, the other negotiator tries to reach an agreement through more reasonable behavior, with the threat of the obnoxious negotiator looming.

Lowball / Highball

Opening offer is ridiculously high or low, which will not be accepted, but will cause the other party to re-assess her opening offer and move beyond the resistance point.


Pretending an issue of little importance is very important. Later in the concession making process, this issue can be traded for something of actual value.

The Nibble

When an agreement in imminent, include a request for a small additional item, not large enough to dissolve the deal but something that will still create extra value.


Forcing the other party to agree by means of an emotional ploy, usually anger or fear.

Aggressive Behavior

Signalling a hard-nosed, intransigent position to force the other party to make concessions.

Snow Job

Overwhelming the other party with so much information that she has trouble determining which facts are real or important and which are merely distractions.

Strategies for Dealing With Hard Ball Tactics

Ignore them, Discuss them, Respond in kind, Co-opt the other party, Negotiating in Teams

Ignoring Hard Ball Tactics

Deflates the efficacy of these tactics, conserves your energy to focus on the relevant issues.

Discuss Hard Ball Tactics

Label the tactics and indicate to the other party that you know what they are doing.

Respond in kind to Hard Ball Tactics

Can result in chaos, but can indicate that you are just as skilled.

Co-opt the other party when confronted with Hard Ball Tactics

Befriend the other party before the tactics can be deployed.

Negotiating in Teams to counter Hard Ball Tactics

Intimidation and aggressive behavior may not have as strong an effect on all members of a team, some of whom can counteract these tactics.


The process of exchanging low priority issues for issues of higher priority.

Keys to Integrative Negotiation

1. Create a free flow of information
2. Attempt to understand the other party's real needs and objectives
3. Emphasize the commonalities between parties and minimize the differences
4. Search for solutions that meet the needs and objectives of both sides.

Factors Indicating that an Integrative Approach Should be Implemented

The negotiation includes more than one issue
It is possible to add issues to the mix
The negotiation is likely to recur over time
The parties have varying preferences across the issues

Pareto Efficient Frontier

The point where there is no agreement that would make any party better off without decreasing the outcomes to any other party.


The underlying concerns, needs, desires, or fears that motivate a negotiator to take a particular position.

Types of Interests

Substantive Interests:
Process Interests
Relationship Interests
Interests in Principle

Substantive Interests

Relate to the focal issues under negotiation (i.e., economic and financial issues like price).

Process Interests:

Related to the way a dispute is settled (i.e., preferences for distributive versus integrative approaches).

Relationship Interests

Parties value the relationship and want to preserve it for the future.

Interests in Principle

Related to fairness, ethics, past experience.

Interests in Negotiation

There is almost always more than one type of interest underlying a negotiation
Parties can have different type of interests at stake
Interests can change
Interests can surface in different ways
Surfacing interests is not always easy or to one's advantage

Alternative Solutions

Expanding the Pie
Use Nonspecific Compensation
Cut the Costs for Compliance
Bridge Solution

Expanding the Pie

Adding resources in such a way that both sides can achieve their objectives.


The process of exchanging low priority issues for issues of higher priority.

Nonspecific Compensation

One party achieves his primary objectives while the other party is paid off for accommodating these objectives. For example, increased vacation days provided in lieu of a $10,000 salary increase during job offer negotiations.

Cut the Costs for Compliance:

The compensated party simply receives something for agreeing.

Bridge Solution

Inventing new options to build agreement.

Objective Standards

Objectively fair outcomes or processes that can be used to benchmark settlements.

Common Goal

A goal that all parties share equally.

Shared Goal

A goal that both parties work toward but that benefits each party differently.

Joint Goal

A goal that involves individuals with different personal goals agreeing to combine them in a collective effort.

Three types of information that are not risky to share

Underlying Interests
Priorities and Preferences
Interpretation of Key Facts

Multiple Simultaneous Offers

Presenting more that one package offer, ensuring that each package offer is equal value to yourself.

Pre-settlement Settlements

Commitments made by negotiating parties before negotiations begin.

Post-settlement Settlements

Negotiators reach a settlement and try to agree upon improvements to that settlement afterwards.