Week 3

In class this week, I learned the distinction between distributive negotiation and integrative negotiation. I think that distributive negotiation is best when you don’t know the person and the relationship that you have won’t matter in the future. The best example of this is the used car negotiation; it is more like a compromise. Each side is only concerned about what they get out of the negotiation. On the other hand, integrative negotiation is more like a negotiation with a friend or family member. Each side is more considerate about the other and the future relationship matters. Integrative is more collaborative so that each side wins.  Another realization that I came to is that your BATNA and your reservation price are generally the same. However, this is hard to see when your BATNA is below your cost.