Distributive bargaining and integrative bargaining
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Distributive negotiation is appropriate in "divide the pie" situations, when there is a fixed amount of resources and whatever one party gains, the other party loses. Usually it's employed when the parties don't know each other and don't believe they will need to develop a relationship with each other for use in the future. A distributive approach to negotiation is usually what we encounter when we make a purchase.
Integrative Basics
An integrative bargaining situation occurs when it's possible to produce a greater outcome together than either could reach on his own. It's used when the parties have a relationship or want to establish one, and when cooperation benefits both parties. There are often multiple issues to address, and the negotiations can be complex and ongoing. Most of us use integrative bargaining within our families and between business partners.
Integrative Basics
An integrative bargaining situation occurs when it's possible to produce a greater outcome together than either could reach on his own. It's used when the parties have a relationship or want to establish one, and when cooperation benefits both parties. There are often multiple issues to address, and the negotiations can be complex and ongoing. Most of us use integrative bargaining within our families and between business partners.
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