Distributive Bargaining
Distributive bargaining is a negotiation strategy often used in collective bargaining where two parties, such as employers and labor unions, compete over a fixed set of resources, like wages or benefits. Each side starts with its own demands and aims to secure the best possible deal for itself. As they negotiate, they may make concessions, but the overall pie remains the same; any gain for one side is typically a loss for the other. This approach contrasts with integrative bargaining, where parties collaborate to find solutions that satisfy both sides' interests.
Additional Insights
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Distributive bargaining is a negotiation strategy where two parties compete over a limited resource, like money or assets, often seen as a "win-lose" situation. Each party aims to maximize their own share at the expense of the other, making it similar to splitting a pie—if one person takes a bigger slice, the other gets less. This approach often involves tactics like making the first offer, setting the initial terms, or bluffing to gain an advantage. It's commonly used in salary negotiations, real estate deals, and any scenario involving divided resources.