NEGOTIATION

METHODS
Two sisters are arguing over an orange…
 Positions vs. Interests

A position is what we want.

An interest is why we want what we want.
Two sisters are arguing over an orange…
Position
What do I want? =

Interest
Why do I want it? ≠
Avoid the Positional Bargaining Trap
- Positional bargaining is based on fixed, opposing viewpoints
(positions) and tends to result in compromise or no
agreement at all.
- A single position may mask a variety of interests
- When you look behind opposed positions for the motivating
interests, you can often find alternative solutions which meet
both parties’ interests
Avoid the Positional Bargaining Trap
Explore interests
Ask “why?”

Be firm on your interests but

flexible on positions!
Role Play
Pareto efficient frontier
For any Pareto-efficient agreement, there exists no
alternatives that would benefit one party without
injuring the other party.
 Pareto efficient frontier

• Given an outcome for A … what’s the most value B can get?

• Given your partner’s level of satisfaction (or dissatisfaction) did you get all the value you could?
• Given your own gains, did your partner get the maximum value they could?
• Pareto efficiency is a criterion by which
outcomes to business problems are routinely
judged. Evaluating whether there is another
feasible option that “makes some agents
better off without making anyone worse off’ is
a part of the study of decision making at all
levels.