Module 1 - Journal Article Analysis (Negotiation and Conflict Resolution)

Definition of 'Distributive Bargaining' Definition: ​Distributive bargaining is a competitive bargaining strategy in which one

party gains only if the other party loses something. It is used as a negotiation strategy to

distribute fixed resources such as money, resources, assets, etc. between both the

parties.

Description: ​Distributive bargaining is also known as zero-sum negotiations because

the assets or the resources which need to be distributed are fixed. So, all the

negotiations will have to happen by taking that into context.

The ultimate aim, under distributive bargaining approach, is not to come to a win-win

kind of situation but that one side wins as much they can. Both parties will try to get the

maximum share from the asset or resource which needs to be distributed.

We end up using distributive bargaining approach in our daily lives as well when we

shop. Usually distributive bargaining approach works well with products which do not

have a fixed price.

For example, if you go to the supermarket and buy some products, you won't be able to

bargain because they have a fixed price. Either you can buy the product or leave it.

Let's understand distributive bargaining approach with the help of another example. You

go to Lajpat Nagar market in New Delhi to buy a rug. You are visiting the shop for the

first time and if the rug is of adequate quality, both the parties might not see each other

again. The shopkeeper will quote you one price, rather than any lower rate as

suggested by you.

In distributive bargaining approach, both the parties try to know each other's

walk-away-value to take a decision. After that, they make a deal in that it is closer to

their own goal rather than adjusting according to the competitors.

In case the rug cost you Rs 1000, and you give a counter offer of Rs 800. The

shopkeeper loses Rs 200. He/she would try to limit the loss and try selling the at around

Rs 900-950.