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Negotiation Strategies (880460-M-6) - Extensive summary of the lectures

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This summary contains all the study material for the multiple choice part of the exam of Negotiation Strategies. Part of the Master Communication and Information Science at Tilburg University.

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Voorbeeld van de inhoud

NEGOTIATION STRATEGIES
MSC COMMUNICATION AND INFORMATION SCIENCE – BLOCK 3 2025




TABLE OF CONTENTS

Lecture 1 ........................................................................................................................................................................... 2
Overview of the course and practical matters......................................................................................................................... 2

Lecture 2 ........................................................................................................................................................................... 3

Distributive & integrative bargaining ...................................................................................................................................... 3

Lecture 3 ......................................................................................................................................................................... 13

Strategy: Ethics & justice ....................................................................................................................................................... 13

Lecture 4 ......................................................................................................................................................................... 22
Perception & Persuasion ....................................................................................................................................................... 22

Lecture 5 ......................................................................................................................................................................... 32

Communication (on- and offline)........................................................................................................................................... 32

Lecture 6 ......................................................................................................................................................................... 40

Gender ................................................................................................................................................................................... 40

Lecture 7 ......................................................................................................................................................................... 52
Relationships, personality & power ....................................................................................................................................... 52

Lecture 8 ......................................................................................................................................................................... 60
Culture: international and cross-cultural negotiation ........................................................................................................... 60




1

,LECTURE 1
OVERVIEW OF THE COURSE AND PRACTICAL MATTERS




CONFLICT AND NEGOTIATION

Conflict = A situation where two or more parties perceive a threat to their interests, needs, or concerns, leading to
disagreement or opposition.

Negotiation = A process in which two or more parties with differing interests attempt to reach a mutually acceptable solution.

EXAMPLES OF CONFLICT AND NEGOTIATION

1. Two neighbors argue about the parking space in front of their house.
2. In spite of the task schedule you introduced, the kitchen in your student home remains a mess. One of the occupants
simply never does his cleaning task.
3. Dutch company in water management and dredging has a work conflict with their workers in a project in Egypt

NEGOTIATIONS

Why and when? Negotiations occur whenever there are differences in needs, desires, or interests between parties, and both
sides aim to improve their situation.

What? Characteristics

• Conflict of needs and desires à Each party wants something the other may also want.
• Expectation of improvement à Parties assume to get a better situation than before the negotiation
• “Give and take” process à Negotiation involves concessions, compromises, and balancing interests.

Successful negotiation involves:

1. Management of tangibles: Concrete, measurable items such as money, resources, deadlines, contracts, or benefits
2. Management of intangibles: Emotions, trust, relationships, reputation, and goodwill. Understanding the
psychological and social factors that influence decision-making

Even if the tangible outcomes are favorable, failure to manage intangibles (like relationships or trust) can make a negotiation
ultimately unsuccessful.




COLLECTING NO’S ASSIGNMENT TAKEAWAYS

In direct interaction, people prefer complying over rejecting. Possible explanations:

• Psy: Save face (Goffman, 1967) à Rejecting a request threatens your ‘face’
• Discourse: preference organization (Levinson, 1983) à In conversation, it is easier to accept a request. Declining
asks for more effort.

Take home message: Always be positive about what you can achieve in a negotiation: people prefer a yes over a no!




2

,LECTURE 2
DISTRIBUTIVE & INTEGRATIVE BARGAINING




DISTRIBUTIVE BARGAINING

Distributive bargaining = Distributive bargaining is a negotiation strategy where two sides compete over a fixed number of
resources, like money or time. One side’s gain is the other side’s loss (the pie cannot be expanded) à it’s often called a “win-
lose” negotiation.

1. Fundamental conflict of goals à Both sides want different outcomes that cannot fully coexist.
2. Resources are fixed and limited à The size of the “pie” is set. There is only a certain amount of money, time, or
goods to divide, so you cannot create value, you can only claim it.
3. Both parties want to maximize their own share à Each negotiator tries to get the biggest possible slice.

Together this gives us a distributive negotiation situation

When goals conflict, resources are limited, and both parties aim to claim as much as possible, the negotiation becomes
distributive. The core idea is: every move that helps one side hurts the other, which shapes the strategy and mindset of the
negotiation.

EXAMPLE

Selling a house (when times were ‘normal’) à Seller wants to sell a house is asking a price for a house (€250.000). Buyer is
willing to give an offer of €200.000. Can they come to an agreement?

Behind every house selling arrangement there is a hidden story:

• The seller and buyer both have a target point
• They also both have a walkaway point
• This means we have a negotiation rang à Positive bargaining range

POSITIVE BARGAINING RANGE

A positive bargaining range means that an agreement is possible because the buyer’s and seller’s acceptable ranges overlap.
Inside this overlap, both parties could say “yes.”




Key points:

• Target point à This is the outcome you hope to achieve. Is the deal lands on you target, you are still very satisfied.
• Walkaway point (reservation point)à This is the limit beyond which you will not accept the deal. If the proposed
agreement falls below this point, you’d rather walk away.
3

, BEYOND JUST THE PRICE

These key points now talk about price; however, real negotiations rarely depend on just the price.

• In the example of a house, factors could include à Emotional value, location, renovation costs, moving date, etc.

Hardly never it is about only the price, but other factors also play a role. This brings us to the Bargaining mix:

CRUCIAL ELEMENTS OF BARGAINING: B&B

Bargaining mix and BATNA

BARGAINING MIX

The bargaining mix includes all issues that are negotiated, not just price.

Multi-item negotiations where every issue has:

• Its own target point (e.g., price, waiting time, extra’s)
• Its own walk away point

A multi-issue negotiation is more complex, but it creates more opportunities to trade and find solutions.

You can give on one issue (e.g., move-out date) and gain on another (e.g., price). This increases the chance of reaching an
agreement that feels fair to both sides.

BATNA

Best alternative to a negotiated agreement à Your BATNA is what you will do if the negotiation fails (your plan B)

Having an alternative can also have an influence on the negotiation. Why having a good BATNA matters in negotiations:

• If you have a good alternative, you become more confident
• You feel less pressured to accept a bad deal
• You gain power, because you know you can always walk-away
• A strong BATNA often leads to better outcomes

LET’S BARGAIN


EXAMPLE

Suppose you want to buy a laptop à MacBook pro, 3 years old

• Asking price: €1000
• You offer: €500

This starts a distributive negotiation where both sides make offers and counteroffers to move toward an agreement.

OFFERS / COUNTEROFFERS

1.




4

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