MGT 500 Lecture Notes - Lecture 95: Anchoring
21 Dec 2020
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Document Summary
Distributive bargaining has an identifying feature that operates under zero-sum conditions. Zero-sum conditions means that any gain someone makes is at the other person"s expense and vice versa. Every dollar you manage or try to get the seller to cut from the price of whatever you are buying is a dollar you save. On the other end, every dollar the seller can manage to get from you comes at your own expense. The essence of distributive bargaining is basically a negotiation over which person gets what share of a fixed pie. A fixed pie is the set amount of services or goods that are divvied up. When there is a fixed pie, or at the very least, when parties believe the pie is fixed, they tend to engage in distributive bargaining. Parties a and b represent the two negotiators. Each party has a target point that defines what the person wants to achieve out of the negotiation.
