The Negotiation Process
74 Pages Posted: 21 May 2007
This article explores the six formal stages of the negotiation process to demonstrate to readers how structured bargaining encounters are. During the Preparation Stage, negotiators have to acquire critical information and determine: (1) their bottom lines; (2) their goals; and (3) their opening offers. During the Preliminary Stage, they should work to establish rapport with opponents and to create positive negotiating environments that will be more conducive to cooperative bargaining. During the Information Stage, negotiators must ask open-ended questions designed to discover what items are available for division - value creation. During the Distributive Stage, the participants vie for the items that are on the table - value claiming. During the Closing Stage, the parties seek to solidify the terms of their agreement without giving up more than they need to. During the final Cooperative Stage, the participants should work to maximize their joint returns to be certain they have achieved mutually efficient agreements.
Keywords: Negotiation Stages, Bargaining Efficiency, Bargaining Process
JEL Classification: K40
Suggested Citation: Suggested Citation