Topic > Buying a House with Distributive Bargaining Skills

Distributive Bargaining is a very important negotiation skill. Used as the core of a negotiation, distributive bargaining is defined as “a method of negotiation in which two parties strive to divide a fixed set of resources, often money, each party seeking to maximize its share of the distribution” (Michael R. Carrell, 2008). Within the distributive bargaining process, the two parties involved must negotiate over a set of goods in which one person loses and the other gains. This is why distributive bargaining is also called zero-sum. Carroll explains that distributive bargaining is called a zero-sum process because one party loses whatever money the other party gains” (Michael R. Carrell, 2008). The dynamics of a win-lose bargaining situation can make negotiations extremely tense and volatile because only one party will benefit from the end of these types of negotiations. This makes the concept of distributive bargaining controversial. Michael Wheeler, the author of the article, Three Cheers for Teaching Distributive Bargaining, discusses how many professors at a management academy conference disapproved of the negotiation tactics of distributive bargaining. Wheeler explains that the vast majority of participants disapproved of exposing their impressionable pupils to the reality that in some negotiations, more for one party means less for the other” (Wheeler, 2012). The reluctance to teach distributive bargaining tactics may be due to the fact that most negotiation skills teachings focus on the concept that all parties come away from an agreement with something they want. Negotiations are supposed to begin in a positive manner, in which negotiators consider the needs and desires of others involved and their...... middle of paper... n purchase a home at the price most compatible with the buyers' budget. References Michael R. Carrell, C. H. (2008). Essentials of Negotiation: Theory, Skills and Practices. New Jersey: Pearson. Venter, D. (2014). Framing: an important negotiation tool. Retrieved from www.calumcoburn.co.uk: http://www.calumcoburn.co.uk/articles/articles-framing/Wheeler, M. (2012). Three cheers for teaching distributive bargaining. Journal of Negotiations, 73-78.William Goetzmann, a. L. (2006). Estimation of house price indices in the presence of seller reservation prices. Review of economics and statistics. pp. 100-112. www.acq.osd.mi. (2014). Bargaining tactics. Retrieved from www.acq.osd.mi: http://www.acq.osd.mil/dpap/cpf/docs/contract_pricing_finance_guide/vol5_ch7.pdf