Negotiation

Negotiation

Negotiation happens everyday. It is not just important in business, or international diplomacy, or when there is a North-South Summit.
It is important when you are having a job interview, bargaining for discounts at Namdaemun, choosing a place to holiday with your friends or asking your Professor for more grades.

A negotiation is when 2 parties with different positions but need each other, work with each other to find the best way forward. Assuming the negotiation is between Party A and Party B, the possible outcomes for a negotiation could be

  • Win : Win – both A and B get something
  • Win Much : Lose – A wins a lot more than B
  • Lose : Win Much – B wins a lot more than A
  • Lose : Lose – both A and B lose

We can use the example of buying a house. Assume A is buyer and B is the real-estate agent. A likes the house but wants a lower price. B doesn't want to reduce too much because he will lose his commission. Here are the possible outcomes

  • Win : Win – both A and B get something (A pays a little more and B accepts a little less comission)
  • Win Much : Lose – A wins a lot more than B (A gets his cheap price and B gets a very low commission)
  • Lose : Win Much – B wins a lot more than A (A pays a lot and B get his big commission)
  • Lose : Lose – both A and B lose (the sale is not made, A doesn't get the house and B doesn't get the commission. Someone else buys the house from another agent)