Key Concepts for Negotiation

As a graduate student, I write response for every week on various subjects and I decided to publish them for the ones who are interested. They are very short and aims brief coverage. Therefore, they can just provide a starting point.


And here is the first one on Key Concepts for Negotiation:


By reading Harford, in the Logic of Life (2008), we can assert that people are rational as they calculate the cost, benefit and consequences of their actions, rather consciously or unconsciously, for their future as well as for the present(p. 4). Whereas he opposes ‘Homo Economicus’ in four manners as “people are motivated by all kinds of normal human emotions”(p.11).

Wit, in his article ‘ How ‘Crazy’ Are The North Koreans? ’, says that North Koreans are rational and realist as they are survival oriented. From his words, ‘We simply don’t take them seriously’, I can infer that recognition is central for negotiation, as we have actors and issue(s) to be discussed to solve the conflict, although it is sometimes held just to gain time when other games are played.

In Harvard Law School, Program on Negotiation Report, (no.10, 2012) basic ‘technical’ concepts, such as BATNA(Best Alternative to a Negotiated Agreement), reservation value, target value are introduced. After that, we read a brief roadmap for a negotiation strategy.

Lastly, in Muthoo’s article named A Non-Technical Introduction to Bargaining Theory (in World Economics, April-June 2000), we read some principles for ‘bargaining’. Such as patience, inside- outside options, bargaining power of the negotiators, breaking down risk, commitment, asymmetric information. Although I liked his points, I would like to come up with some thoughts. First, he does not clearly make a separation between bargaining and negotiation, because we know from Hopmann that ‘bargaining is not negotiation’(1995). Second, as Muthoo uses marital bargaining example, this makes me remember realist approach of ‘Battle of Sexes’ in which a couple try to reach an agreement on their vacation. Therefore, I would like to read integrative and distributive negotiations regarding this situation and also the ‘expanding the pie’ approach. Third, as he puts emphasis on impatience and asymmetric information, I would like to read his thoughts on lack of trust, role of outsiders (their manipulation). Fourth, we can reach some blueprints for power asymmetry in bargaining power coming from outside options, I would like to see power asymmetry situations in negotiation. Lastly, I think that he makes clear the problems and their consequences but does not mention how to overcome them.


One response so far

to “Key Concepts for Negotiation”

  1. xxxon 28 Dec 2016 at 11:39

    Excellᥱnt post. I certainly lovе this website.
    Keep it up!

Leave a Reply