Distributive Negotiation

The video tutorial explains distributive negotiation, where the interest at stake is a fixed sum, making it a competitive, win-lose scenario. It highlights that while one party gains, the other loses, but both can still achieve their reservation points. An example illustrates how both parties can 'win' by exceeding their minimum acceptable outcomes. The tutorial also discusses how competitive aspects can lead to negotiation failure and notes that distributive negotiations are common in single transaction scenarios.

What is a key characteristic of distributive negotiation?

• It focuses on long-term relationships.

• It involves a fixed sum of interest.

• It is a win-win scenario.

• It involves creating additional value.

In a distributive negotiation, what is the term used for the minimum acceptable outcome?

• Negotiation limit

• Maximum threshold

• Reservation point

• Bargaining chip

How can both parties 'win' in a distributive negotiation?

• By focusing on future transactions

• By achieving more than their reservation point

• By ensuring the other party loses

• By creating additional interest

What often causes distributive negotiations to fail?

• Lack of interest

• Competitive nature and perceived unfairness

• Focus on future transactions

• Too many parties involved

In what scenario are distributive negotiations most common?

• Collaborative projects

• Single transaction scenarios

• Long-term partnerships

• Multiple transaction scenarios