Mediation is a structured, interactive process where an impartial third party neutrally assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques. All participants in mediation are encouraged to actively participate in the process. Mediation is a "party-centered" process in that it is focused primarily upon the needs, rights, and interests of the parties. The mediator uses a wide variety of techniques to guide the process in a constructive direction and to help the parties find their optimal solution. A mediator is facilitative in that they manage the interaction between parties and facilitates open communication. Mediation is also evaluative in that the mediator analyzes issues and relevant norms ("reality-testing"), while refraining from providing prescriptive advice to the parties.
Negotiation is a dialogue between two or more parties to resolve points of difference, gain an advantage for an individual or collective, or craft outcomes to satisfy various interests. The parties aspire to agree on matters of mutual interest. The agreement can be beneficial for all or some of the parties involved. The negotiators should establish their own needs and wants while also seeking to understand the wants and needs of others involved to increase their chances of closing deals, avoiding conflicts, forming relationships with other parties, or maximizing mutual gains. Distributive negotiations, or compromises, are conducted by putting forward a position and making concessions to achieve an agreement. The degree to which the negotiating parties trust each other to implement the negotiated solution is a major factor in determining the success of a negotiation.
In negotiation theory, the best alternative to a negotiated agreement or BATNA refers to the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached. The BATNA could include diverse situations, such as suspension of negotiations, transition to another negotiating partner, appeal to the court's ruling, the execution of strikes, and the formation of other forms of alliances. BATNA is the key focus and the driving force behind a successful negotiator. A party should generally not accept a worse resolution than its BATNA. Care should be taken, however, to ensure that deals are accurately valued, taking into account all considerations, such as relationship value, time value of money and the likelihood that the other party will live up to their side of the bargain. These other considerations are often difficult to value since they are frequently based on uncertain or qualitative considerations rather than easily measurable and quantifiable factors.
In the social sciences, bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service debate the price or nature of a transaction. If the bargaining produces agreement on terms, the transaction takes place. It is often commonplace in poorer countries, or poorer localities within any specific country. Haggling can mostly be seen within street markets worldwide, wherein there remains no guarantee of the origin and authenticity of available products. Many people attribute it as a skill, but there remains no guarantee that the price put forth by the buyer would be acknowledged by the seller, resulting in losses of profit and even turnover in some cases. A growth in the country's GDP Per Capita Income is bound to reduce both the ill-effects of bargaining and the unscrupulous practices undertaken by vendors at street markets.
Roger D. Fisher was Samuel Williston Professor of Law at Harvard Law School and director of the Harvard Negotiation Project.
Conflict resolution is conceptualized as the methods and processes involved in facilitating the peaceful ending of conflict and retribution. Committed group members attempt to resolve group conflicts by actively communicating information about their conflicting motives or ideologies to the rest of group and by engaging in collective negotiation. Dimensions of resolution typically parallel the dimensions of conflict in the way the conflict is processed. Cognitive resolution is the way disputants understand and view the conflict, with beliefs, perspectives, understandings and attitudes. Emotional resolution is in the way disputants feel about a conflict, the emotional energy. Behavioral resolution is reflective of how the disputants act, their behavior. Ultimately a wide range of methods and procedures for addressing conflict exist, including negotiation, mediation, mediation-arbitration, diplomacy, and creative peacebuilding.
Social exchange theory is a sociological and psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits. The theory also involves economic relationships—the cost-benefit analysis occurs when each party has goods that the other parties value. Social exchange theory suggests that these calculations occur in romantic relationships, friendships, professional relationships, and ephemeral relationships as simple as exchanging words with a customer at the cash register. Social exchange theory says that if the costs of the relationship are higher than the rewards, such as if a lot of effort or money were put into a relationship and not reciprocated, then the relationship may be terminated or abandoned.
Conflict management is the process of limiting the negative aspects of conflict while increasing the positive aspects of conflict. The aim of conflict management is to enhance learning and group outcomes, including effectiveness or performance in an organizational setting. Properly managed conflict can improve group outcomes.
The term zone of possible agreement (ZOPA), also known as zone of potential agreement or bargaining range, describes the range of options available to two parties involved in sales and negotiation, where the respective minimum targets of the parties overlap. Where no such overlap is given, in other words where there is no rational agreement possibility, the inverse notion of NOPA applies. Where there is a ZOPA, an agreement within the zone is rational for both sides. Outside the zone no amount of negotiation should yield an agreement.
In game theory, Deadlock is a game where the action that is mutually most beneficial is also dominant. This provides a contrast to the Prisoner's Dilemma where the mutually most beneficial action is dominated. This makes Deadlock of rather less interest, since there is no conflict between self-interest and mutual benefit. On the other hand, deadlock game can also impact the economic behaviour and changes to equilibrium outcome in society.
A bilateral monopoly is a market structure consisting of both a monopoly and a monopsony.
Conflict resolution is any reduction in the severity of a conflict. It may involve conflict management, in which the parties continue the conflict but adopt less extreme tactics; settlement, in which they reach agreement on enough issues that the conflict stops; or removal of the underlying causes of the conflict. The latter is sometimes called "resolution", in a narrower sense of the term that will not be used in this article. Settlements sometimes end a conflict for good, but when there are deeper issues – such as value clashes among people who must work together, distressed relationships, or mistreated members of one's ethnic group across a border – settlements are often temporary.
Bargaining power is the relative ability of parties in an argumentative situation to exert influence over each other. If both parties are on an equal footing in a debate, then they will have equal bargaining power, such as in a perfectly competitive market, or between an evenly matched monopoly and monopsony.
Getting to Yes: Negotiating Agreement Without Giving In is a best-selling 1981 non-fiction book by Roger Fisher and William Ury. Subsequent editions in 1991 and 2011 added Bruce Patton as co-author. All of the authors were members of the Harvard Negotiation Project.
Intra-household bargaining refers to negotiations that occur between members of a household in order to arrive at decisions regarding the household unit, like whether to spend or save or whether to study or work.
A conflict is a struggle and a clash of interest, opinion, or even principles. Conflict will always be found in society; as the basis of conflict may vary to be personal, racial, class, caste, political and international. Conflict may also be emotional, intellectual, and theoretical, in which case academic recognition may, or may not be, a significant motive. Intellectual conflict is a subclass of cultural conflict, a conflict that tends to grow over time due to different cultural values and beliefs.
Sequential bargaining is a structured form of bargaining between two participants, in which the participants take turns in making offers. Initially, person #1 has the right to make an offer to person #2. If person #2 accepts the offer, then an agreement is reached and the process ends. If person #2 rejects the offer, then the participants switch turns, and now it is the turn of person #2 to make an offer. The people keep switching turns until either an agreement is reached, or the process ends with a disagreement due to a certain end condition. Several end conditions are common, for example:
David Lax is an American negotiation expert, author, speaker, statistician and academic. He is currently a Distinguished Fellow at the Harvard Negotiation Project, Managing Principal of Lax Sebenius LLC, a firm that advises companies and governments in challenging and complex negotiations, and a former professor at Harvard Business School.
Leigh Thompson is the J. Jay Gerber Professor of Dispute Resolution & Organizations in the Kellogg School of Management at Northwestern University. She is the director of High Performance Negotiation Skills Executive program, the Kellogg Leading High Impact Teams Executive program and the Kellogg Team and Group Research Center. She also serves as the co-director of the Navigating Work Place Conflict Executive program and the Constructive Collaboration Executive program.
Trust building is the most influential factor in negotiating between two sides. The stronger this factor appears, the greater the chance will be for negotiators to cooperate. Studies have suggested that religious backgrounds can have a direct impact on the confidence and process of negotiation. Such tendencies generally do not prevent a contract or an agreement from being concluded; however, there are reasons to believe that religious affiliations reduce the negotiation process and give more confidence to decision makers.
