Learn how to negotiate like a diplomat, think on your feet like an improv performer, and master job offer negotiation like a professional athlete when you download a copy of our FREE special report, Negotiation Skills: Negotiation Strategies and Negotiation Techniques to Help You Become a Better Negotiator, from the Program on Negotiation at Harvard Law School.

distributive bargaining

What is Distributive Bargaining?

Distributive bargaining involves haggling over a fixed amount of value—that is, slicing up the pie.

Wise negotiators recognize the value of both collaborating and competing at the bargaining table. They look for ways to increase the pie of value for all parties, often by identifying differences across issues and making tradeoffs. And they also rely on distributive bargaining strategies to try to claim as much of that larger pie for themselves.

People often think that distributive bargaining strategies require adversarial bargaining, such as making tough demands, threats, or bluffs. But in fact, the most effective distributive bargaining strategies require you to set aside plenty of time before your negotiation to engage in clear-eyed preparation.

In particular, negotiators should determine their best alternative to a negotiated agreement, or BATNA—what they’ll do if they don’t achieve their goals in the current negotiation. A job seeker might decide to pursue other job openings, for example. Negotiators also need to assess their reservation point or walk away point—the figure at which they’re indifferent between accepting the deal they negotiated and instead of turning to their BATNA.

Additionally, to help determine the most you’ll be able to get in a distributive bargaining situation, take some time to research the other party’s likely BATNA and reservation point.

Then, armed with a sense of each party’s reservation point and BATNA, you should be able to determine if a zone of possible agreement, or ZOPA, exists in your distributive bargaining. The ZOPA is the range of all possible deals that both parties would accept. Your reservation point will be at one end of the ZOPA, and the other party’s reservation point will be at the other.

Discover how to boost your power at the bargaining table in this free special report, BATNA Basics: Boost Your Power at the Bargaining Table, from Harvard Law School. Just click the link. We will send you a download link to your copy of the report and notify you by email when we post new business negotiation advice.

The following items are tagged distributive bargaining:

What is Distributive Negotiation and Five Proven Strategies

Posted by & filed under Dealmaking.

Most negotiations call for very different, even opposing, skills: collaboration and competition. To get a great deal, we typically must work with others to find new sources of value while also competing with them to claim as much of that value for ourselves. Before mastering the intricacies of value creation in negotiation, it helps to … Read More

High Stakes Negotiations in the Healthcare Industry

Posted by & filed under Teaching Negotiation.

Teach Your Students to Negotiate One of the Most Critical Global Industries With the COVID-19 pandemic devastating communities around the world, the acute importance of the healthcare industry to community welfare has become even more apparent. Healthcare is one of the biggest economies in the world, with billions of dollars spent on treatments and associated research. … Read More

Negotiation Tactics for Bargaining with Difficult People: The Comcast Merger

Posted by & filed under Dealing with Difficult People.

If a competitive bargaining session shifts in a counterpart’s direction, your anger could send the wrong signals to your negotiation counterpart. In this instance, strong emotions portray desperation rather than strength. Here are some bargaining and negotiation tactics for dealing with difficult situations in relationships. … Read More

Teach Your Students Value Distribution with a Simulation on Solar Power

Posted by & filed under Teaching Negotiation.

Do your students really understand the difference between value distribution and integrative negotiation, and have you given them a chance to practice their distributive bargaining skills? Do they understand that every negotiation includes elements of both value creation and value distribution? To help teach these key negotiation skills the Teaching Negotiation Resource Center (TNRC) has developed a … Read More

Teaching Real Estate Negotiation: How to Identify and Create Value

Posted by & filed under Teaching Negotiation.

How do you teach your students to identify and create value in real estate negotiations?  Real estate negotiation can be difficult for both the buyer and the seller. Teaching real estate negotiation can involve value creation, distributive bargaining, as well as issue linkages. It is important for both buyers, sellers, and agents to identify ways to … Read More

The Wired Negotiator: Using Technology in Negotiation

Posted by & filed under Teaching Negotiation.

Everyone negotiates every day. How we negotiate is changing dramatically due to the use of various technological tools. People need not fear this change. Rather, they should understand the different technology at their disposal, grasp the pros and cons, and determine how to select the best medium to suit their needs, negotiation style, and approach. … Read More

Bargaining at a Fever Pitch

Posted by & filed under Leadership Skills.

Have you ever won an auction only to realize later that you overbid for the prize? In competitive bidding situations, it’s easy to get carried away in the heat of the moment and overpay. The Boston Red Sox 2006 procurement of Japanese pitching phenomenon Daisuke “Dice-K” Matsuzaka offers a lesson in keeping cool in these … Read Bargaining at a Fever Pitch

Teach Your Students to Negotiate the Principal-Agent Relationship with Fie’s Agent

Posted by & filed under Teaching Negotiation.

Negotiate International Sports Contracts In many business negotiations, especially those involving athletes, you will find an agent negotiating on behalf of the principal party. This unique principal-agent relationship can cause challenges at the negotiating table. The agent may have different preferences from their principal party. Agents may also have different incentives from the principal. Agents may … Read More

Deal Negotiation and Dealmaking: What to Do On Your Own

Posted by & filed under Dealmaking.

Six negotiation skills tips for negotiators seeking to creative value during their next round at the bargaining table. Business negotiators are often faced with the complex task of coordinating multiple parties – here are some tips for the individual business negotiator on how to achieve success in her next deal negotiation. … Read More

Hong Kong Lawyer Benny Tai Inspired by Harvard Negotiation Project Authors

Posted by & filed under Teaching Negotiation.

The Harvard Negotiation Project was recently mentioned in the Wall Street Journal by David Feith in his interview with Benny Tai, “China’s New Freedom Fighters.” Benny Tai, a 49 year old lawyer who has been branded an “enemy of the state,” founded Occupy Central with Love and Peace, a group that promotes civil disobedience in order … Read More

The Program on Negotiation at Harvard Law School: Three Decades of Scholarship and Practice

Posted by & filed under Negotiation Skills.

Founded in 1983, the Program on Negotiation at Harvard Law School is a pioneer in the fields of negotiation, mediation, and alternative dispute resolution. In commemoration of the program’s 30th anniversary this year, the Program on Negotiation is proud to present a video describing many of PON’s various educational and research activities. According to Chair Robert Mnookin, … Read More

The Story of Goldman Sachs: Negotiating a Vision

Posted by & filed under Business Negotiations.

In 1986, the investment bank Goldman Sachs was a $38 billion business owned by more than 100 active and retired partners. While the partnership structure had insulated the company from the vicissitudes of the stock market and given the company a strong culture of teamwork, it had some significant disadvantages, particularly an unstable capital base and … Read The Story of Goldman Sachs: Negotiating a Vision

Training for Non-Face-to-Face Negotiations

Posted by & filed under Negotiation Skills.

Negotiating by email poses a set of challenges that one doesn’t often encounter in face-to-face negotiations. Without the benefit of seeing your counterpart’s body language, what one person might intend to be a straightforward request the other might perceive to be rude. A legitimate delay responding to an email offer by one party might be construed … Read Training for Non-Face-to-Face Negotiations

Budget turmoil inside a hospital

Posted by & filed under Daily, Negotiation Skills.

The PON Clearinghouse offers hundreds of role simulations, from two-party, single-issue negotiations to complex multi-party exercises. Negotiating Budget Cuts at Newtowne Hospital is a six-person negotiation among hospital administration and employee representatives to reach consensus on budget cuts in three departments. SCENARIO: Dr. Van Hagen, a distinguished heart surgeon, will soon join the staff at Newtowne Hospital, … Read Budget turmoil inside a hospital