The initial price set by the seller

The point at which a negotiator would like to conclude negotiations

The price beyond which a negotiator will not go

The spread between the resistance points

The spread between the resistance points

The asking price set by the buyer

The point at which a negotiator would like to conclude negotiations

The initial price set by the seller

Reservation Price

Best Alternative to a Negotiated Agreement

Worst Alternative to a Negotiated Agreement

Bargaining Range

To determine the other party's target and resistance points

To make exaggerated opening offers

To provide alternatives for the other party

To manipulate the negotiation schedule

To limit the negotiation scope

To create more options for the counterpart

To make the negotiation more complex

To confuse the other party

Offering multiple alternative packages

Suggesting to divide the difference between two positions

Making an exaggerated opening offer

Proposing a moderate opening offer

Asking for a small concession on a new item to close the deal

Pretending a low priority item is important to trade for a concession

Alternating between tough and lenient negotiation approaches

Using extreme offers to change the anchor of potential negotiation settlements

To use emotional ploys to force concessions

To make a final offer close to the resistance point

To create a sense of urgency for the other party to agree quickly

To provide multiple alternatives for the other party

They can lead to long-term positive relationships

They may backfire and lead to revenge motivations

They are highly effective against well-prepared negotiators

They are always considered acceptable in any negotiation situation