What is Negotiation?

Distributive Negotiation is a type of negotiation where parties are competing over something that has a finite amount or a fixed value. In this situation the parties are competing to claim as much of a fixed amount as possible. This type of negotiation is also known as competitive, zero-sum and win-lose bargaining.

Distributive Negotiation focuses on each side getting as much as they can to the exclusion of the other side.

In Cooperative Negotiation (also called Principled Negotiation), the parties cooperate to maximize benefits for everyone concerned by including the interests of all parties the agreement. The goal of these negotiations is to create more value for all parties.

Cooperative Negotiation focuses on parties working together to maximize each person’s situation and work to make sure each side gets what they need.

Integrative Negotiation entails multiple issues being negotiated at once and often requires a mixture of distributive and cooperative negotiation styles. This involves an agreement process that attempts to integrate the aims and goals of all the parties to create a collaborative agreement.

Integrative Negotiation is often used in more complex situations, where the relationship between the parties is one of the more important factors.