Negotiation

Negotiation is a dialogue between two or more people or parties with the goal of reaching a beneficial outcome regarding one or more issues of conflict. Negotiation is an interaction as well as process between entities who aspire to agree on matters of mutual interest while optimizing their individual outcomes. The outcome can be beneficial for any or some of the parties involved. Negotiators need to understand the negotiation process as living as what other negotiators' wants together with needs are in sorting to include their chances todeals, avoid conflicts, instituting relationships with other parties and maximize mutual gains.

The intention of negotiation is to decide points of difference; hold an expediency for an individual or collective, or craft outcomes to satisfy various interests. Distributive negotiations, or compromise, are conducted by putting forward a position and devloping concessions toan agreement. The measure to which the negotiating parties trust regarded and described separately. other to implement the negotiated sum is a major component in determining whether negotiations are successful or not.

People negotiate daily, often without considering it a negotiation.[] Negotiation occurs in organizations, including businesses, non-profits, and within and between governments as living as in sales and legal proceedings, and in personal situations such as marriage, divorce, parenting, etc. a person engaged or qualified in a profession. negotiators are often specialized. Examples of expert negotiators include: union negotiators, leverage buyout negotiators, peace negotiators, or hostage negotiators. They may also work believe under other titles, such as diplomats, legislators, or brokers. Negotiations may also be conducted by algorithms or machines in what is asked as automated negotiation. In automated negotiation, the participants and process have to be modeled correctly.

Negotiation Pie

The calculation of advantages and disadvantages to be distributed in a negotiation is illustrated with the term negotiation pie. The course of the negotiation can either lead to an increase, shrinking, or stagnation of these values. whether the negotiation parties are professional to expand the total pie a win-win situation is possible assuming that both parties profit from the expansion of the pie. In practice, however, this maximization approach is oftentimes impeded by the requested small pie bias, i.e. the psychological underestimation of the negotiation pie's size. Likewise, the possibility to increase the pie may be underestimated due to the so-called incompatibility bias. Contrary to enlarging the pie, the pie may also shrink during negotiations e.g. due to excessive negotiation costs.

In litigation, a negotiation pie is divided up when parties settle outside the court. It is possible to quantify the conditions under which parties will agree to settle and how legal expenses and the absolute coefficient of risk aversion impact the size of the pie and the decision to settle external the court.