So you can trade among the issues Use if then language to put issues into

So you can trade among the issues use if then

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So you can trade among the issues Use “if… then…” language, to put issues into packages
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What are the tangibles at stake? Rate Price Terms Working of Agreements Specific Solutions or Settlements
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What are the intangibles at stake? Intangibles are the underlying psychological motivations The need to win The need to look competent, tough, good Beating the other person Preserving reputation The need to maintain a good relationship with the other party The need to bring in your background, experience, knowledge The need to appear fair or honorable
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Types of negotiation Distributive or competitive negotiation situations: “Win lose”, “fixed pie” Integrative or “win win” situations: “problem solving” “make the pie bigger”. Most situations are multi issue & are “mixed”. Consist of both integrative and distributive issues Need to match tactics and strategies to the situation.
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Distributive negotiation Is about who gets how much Assumption of conflicting goals and potential for compromise or dividing the pie Use: Opening Bids, Target Points, Reservation Points Bargaining Zone is important
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ZOPA Zone of Potential Agreement (ZOPA) Seller’s range Buyer’s target point ($5,000) Buyer’s resistance point ($10,000) Seller’s target point ($12,000) Sellers’s resistance point ($7000) $ $$$$ Buyer’s range
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Zone of Potential Agreement (ZOPA) Seller’s range Buyer’s target point ($5,000) Buyer’s resistance point ($10,000) Seller’s target point ($12,000) Sellers’s resistance point ($7000) $ $$$$ Buyer’s range Negotiation takes place between the two party’s resistance points (ZOPA, also known as bargaining zone)
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