Category: Business

Stage One: Opening Moves As in many games, the life cycle of a negotiation usually involves three stages. In The first or opening stage, the parties usually exchange initial proposals, discuss the issues in general terms without making any counter proposals and arrange the housekeeping aspects of the negotiation. At a second or third meeting,…

As the eminent British philosopher, Walter Bagehot, once said, “When two men ride on a horse, one has to ride in front.” In negotiation, there are two horses to ride: one for the individual who is the chief spokesman for his side and the other for the individual or individuals who are the chief decision…

Since agreement requires mutual consent, negotiation necessarily includes the possibility of disagreement. Parties may discuss terms of settlement but they can also refuse to agree to the terms demanded by the other side. Put another way, negotiation means that both sides have the right to disagree with each other, the right to say no. But…

The unabridged edition of the Random House Dictionary of the English language defines negotiation as the “mutual discussion of the terms of a transaction or agreement.” The College Edition also defines negotiation as “mutual discussion” but it correctly adds the words “aiming at an agreement, at least for most negotiations.” But discussion isn’t indispensable. Negotiation…

Games theory provides a useful means of relating and distinguishing negotiation, mediation, arbitration and litigation from each other. The theory divides games into three categories: skill, chance and strategy and identifies them by their dominant characteristics. In track and field, the skill of the competitors usually determines who will be the winner. Craps and roulette…