Palawan State University
College of Community Resources Development
Balabac Campus
Elective 4 Negotiation – Module 4
STRATEGY AND TACTICS OF DISTRIBUTIVE BARGAINING
OBJECTIVES
At the end of the chapter the students will be able to:
1. Understand the basic elements of a distributive bargaining situation as well as the strategy
and tactics of distributive bargaining.
2. Consider the strategic impact of positions taken during a negotiation and the role of
concessions.
3. Appreciate the role of concessions in distributive bargaining.
4. Identify hardball tactics and learn how to counter them.
Distributive bargaining, also known as positional or "zero-sum" bargaining, is a competitive
negotiation strategy where the parties aim to divide a fixed amount of resources. It is often referred
to as a "win-lose" situation, where one party's gain is another party's loss. The central objective in
distributive bargaining is to maximize one's own share of the resources.
Objective in Distributive Bargaining
The objectives in distributive bargaining primarily focus on claiming value rather than creating
value. The key objectives include:
1. Maximize the Bargaining Position: The negotiator seeks to position themselves as
advantageously as possible by understanding their leverage and the other party's
weaknesses.
2. Obtain the Best Possible Outcome: The goal is to achieve the highest possible gain,
whether in terms of price, resources, or other tangible benefits.
3. Minimize Concessions: A critical objective is to concede as little as possible to the other
party while securing favorable terms.
4. Guard Information: Keeping critical information private, such as the negotiator’s bottom
line or true goals, helps maintain a competitive edge. Sharing information selectively or
strategically is key to controlling the negotiation dynamic.
5. Push the Other Party Toward Their Resistance Point: In distributive bargaining, each
party typically has a "resistance point" or the worst outcome they are willing to accept. An
objective is to push the other party as close to that point as possible without exceeding it.
6. Achieve a Deal Within the Bargaining Zone: The goal is to ensure the agreement falls
within the zone of possible agreement (ZOPA), the range where both parties' acceptable
outcomes overlap.
Strategy & Tactics in Distributive Bargaining
The strategies and tactics in distributive bargaining aim to achieve these objectives by using
pressure, persuasion, and sometimes manipulation. Some common strategies and tactics include:
1. Establishing the Initial Offer (Anchoring)
• Tactic: Make the first offer to anchor the negotiation in your favor. The initial
offer sets the reference point, and subsequent negotiations often revolve around
this number.
pg. 1
SHYRREL SUNIO-DELA CRUZ
shysuniodelacruz@[Link] / sdelacruz@[Link]
09217831959/09307494045/09668396433
Palawan State University
College of Community Resources Development
Balabac Campus
Elective 4 Negotiation – Module 4
• Strategy: Set the initial offer ambitiously, but not unrealistically, to provide room
for negotiation while influencing the final outcome.
2. Conceding Gradually
• Tactic: Make concessions slowly and incrementally. By giving ground bit by bit,
you signal that you are nearing your limit, which can pressure the other party to
settle.
• Strategy: Ensure that each concession is reciprocated by the other party to maintain
balance and avoid appearing too eager to reach an agreement.
3. Defining & Protecting the Resistance Point
• Tactic: Determine your resistance point (the minimum or maximum you are
willing to accept) in advance and stick to it. Avoid revealing this point to the other
party.
• Strategy: Signal that you are approaching your resistance point through subtle
cues, without explicitly stating it, to push the other party toward making a deal
within your acceptable range.
4. Using Time Pressure
• Tactic: Use deadlines or urgency to put pressure on the other party to concede
more quickly. A sense of limited time can create stress and lead to faster
concessions.
• Strategy: Manage timing strategically, knowing when to accelerate or slow down
the pace of negotiations to maintain control.
5. Emotional Tactics
• Tactic: Use emotional appeals such as frustration, impatience, or friendliness to
manipulate the other party’s behavior. For example, showing disappointment
might prompt the other party to sweeten the deal.
• Strategy: Maintain composure and use emotions deliberately to affect the other
party’s decision-making.
6. Bogey
• Tactic: Pretend that a minor issue is more important than it really is. Once the
other party makes concessions on this "bogey," you can trade those for something
you truly value.
• Strategy: Use the bogey as a red herring to divert attention and gain leverage in
areas where you genuinely seek advantage.
7. Good Cop/Bad Cop
• Tactic: One negotiator plays the "bad cop," making extreme demands and using
aggressive tactics, while another plays the "good cop," appearing more reasonable
and willing to compromise. This dynamic can push the other party to concede to
the "good cop."
pg. 2
SHYRREL SUNIO-DELA CRUZ
shysuniodelacruz@[Link] / sdelacruz@[Link]
09217831959/09307494045/09668396433
Palawan State University
College of Community Resources Development
Balabac Campus
Elective 4 Negotiation – Module 4
• Strategy: Use this tactic to create contrast and drive the other party toward a more
favorable settlement.
8. The Final Offer (Take-it-or-leave-it)
• Tactic: Make a final offer and indicate that no further negotiation is possible. This
puts pressure on the other party to accept, as they perceive that the alternative is
no deal.
• Strategy: Use this tactic cautiously; it can be effective when you have a strong
alternative to a negotiated agreement (BATNA) but may backfire if the other
party walks away.
Conclusion:
The strategy and tactics of distributive bargaining revolve around maximizing personal gain,
claiming value, and strategically pressuring the other party to concede. The core focus is on
understanding leverage, protecting key information, and managing concessions. While it is
often competitive and confrontational, distributive bargaining can lead to favorable outcomes
when executed carefully and with clear objectives.
Thank You!
pg. 3
SHYRREL SUNIO-DELA CRUZ
shysuniodelacruz@[Link] / sdelacruz@[Link]
09217831959/09307494045/09668396433