Negotiation & Mediation

Negotiation is when two or more people talk to each other to reach an agreement. The goal is
to solve a problem, settle a disagreement, or get the best possible result for everyone
involved. Negotiation is based on compromise, meaning each side gives and takes
something.

Negotiation happens everywhere:

 In business and jobs

 In government and law
 Between countries
 In personal life (marriage, divorce, parenting, daily decisions)

Some people negotiate as their profession, such as diplomats, lawyers, union leaders, and
peace negotiators.

Negotiation vs Mediation vs Arbitration

 Negotiation: The parties talk directly to each other.

 Mediation: A neutral third person helps both sides communicate and find a solution.
 Arbitration: A third person listens to both sides and makes the final decision (like a
judge).

Types of Negotiation

1. Distributive Negotiation (Win–Lose)

 Also called hard bargaining.

 Assumes there is a fixed amount of benefit to share (like one cake).
 If one person gets more, the other gets less.
 People often start with extreme demands and then slowly compromise.
 Common in one-time deals, such as buying a car or house.
 Focus is on winning, not on relationships.

2. Integrative Negotiation (Win–Win)

 Also called interest-based negotiation.

 Tries to create more value so both sides benefit.
 Focuses on real needs and interests, not just demands.
 Encourages cooperation, trust, and creative solutions.
 Helps build long-term relationships.
 Example: adjusting price, delivery time, and service so both sides are happy.
Main Parts of Negotiation

1. Process – How negotiation happens

(steps, timing, tactics used)
2. Behavior – How people act
(communication style, attitude, relationship)
3. Substance – What is being negotiated
(issues, interests, options, final agreement)

Another way to understand negotiation includes:

 Strategy: Overall goals

 Tools & Process: Planning and roles
 Tactics: Specific actions and words used

Negotiation Approaches and Tactics

 Negotiators can see the other side as an enemy (hard bargaining) or a partner
(cooperative approach).
 A good agreement is not about maximum gain, but fair and best possible results for
both sides.
 Sometimes a negotiator acts as an advocate for one side to get the best deal.
 Common tactics include:
o Good cop / bad cop
o Intimidation
o Making small demands slowly (salami tactic)
o Using body language to show control

Here is the content explained in easy words with some detail, suitable for lecture
understanding and exams:

Types of Negotiators

Researchers from the Harvard Negotiation Project identified three main types of
negotiators: Soft, Hard, and Principled negotiators.

1. Soft Negotiators

 Soft negotiators see negotiation as something uncomfortable or too competitive.

 They prefer to be friendly and gentle.
  They often give in easily to others’ demands, even if it is not good for them.
 They avoid conflict and focus on keeping good relationships.
 Their main goal is reaching an agreement, not winning.
 They trust others easily and may change their opinions quickly.
 They do not separate people from the problem, meaning they are soft on both.

Result: Agreement is reached, but often at their own loss.

2. Hard Negotiators

 Hard negotiators see negotiation as a battle.

 They use strong language like “take it or leave it”.
 They make threats, apply pressure, and do not trust the other side.
 They stick strongly to their position and demand victory.
 They see the other side as an enemy.
 They look for only one solution and want the other party to accept it.
 They are hard on both the people and the problem.

Result: They may win short-term but damage relationships.

3. Principled Negotiators

 Principled negotiators aim for fair and win–win solutions.

 They focus on solving the problem, not attacking people.
 They separate people from the problem.
 They explore the real interests and needs of both sides.
 They avoid strict bottom lines.
 Decisions are based on objective standards, such as fairness, laws, professional
rules, or moral principles.
 They do not rely on power, threats, or pressure.

Result: Fair, long-lasting agreements that benefit both sides.

Bad Faith Negotiation

Bad faith negotiation happens when a party pretends to negotiate but never intends to
compromise or reach an agreement.

 The party may talk and negotiate only for show.

 This is common in politics, where negotiations may be used for political advantage.
 Even when the other side shows positive signs, they are ignored or seen as tricks.
 This behavior is explained by the Inherent Bad Faith Model, where one side
assumes the opponent is always hostile.
Examples:

 Political parties negotiating only for public image.

 States or groups refusing compromise while pretending to negotiate.

Here is the explanation in easy words with some detail, suitable for lecture notes and
exams:

Emotion in Negotiation

Emotions play a very important role in negotiation. Although people used to think
negotiation was mainly logical, research now shows that feelings strongly influence
decisions.

Emotions can have both positive and negative effects during negotiation.

Negative Emotions in Negotiation

 Examples: anger, frustration, fear, sadness

 These emotions can make people act irrationally or emotionally.
 They may cause arguments to escalate and negotiations to fail.
 However, showing negative emotions like anger can sometimes pressure the other
side into making concessions (giving something up).

Risk: Too much negativity can damage relationships and stop agreement.

Positive Emotions in Negotiation

 Examples: happiness, trust, empathy, calmness

 These emotions help create cooperation and trust.
 They make it easier to reach an agreement.
 Positive emotions often lead to better joint outcomes, where both sides gain.
 They can also encourage the other party to make concessions.

Benefit: Better communication and long-term relationships.

Strategic Use of Emotions

 Negotiators may intentionally show certain emotions to influence outcomes.

 Both positive and negative emotions can be used as strategies.
 Emotional expressions can affect:
o Task outcomes (the final deal)
o Relationship outcomes (trust and future cooperation)

Cultural Differences

 Emotional expressions do not work the same in all cultures.

 What is acceptable in one culture may be seen as rude or weak in another.
 Negotiators must understand cultural norms when expressing emotions.

Affect Effect in Negotiation

Affect means a person’s general emotional state or mood.

A negotiator’s mood (positive or negative) strongly influences how they plan, act, and
decide during negotiation.

There are two main types:

 Positive Affectivity (PA) – good mood, optimism

 Negative Affectivity (NA) – bad mood, anger, frustration

These affects influence all stages of negotiation, from planning to final outcomes.

1. Positive Affect in Negotiation

Before Negotiation

 People in a positive mood feel more confident.

 They are more likely to plan cooperative strategies.

During Negotiation

 They enjoy the discussion more.

 They show less aggressive behavior.
 They use more cooperative and flexible strategies.
 They communicate better and build trust.

Outcomes
  Higher chance of reaching an agreement.
 Better win–win (integrative) outcomes.
 More likely to honor agreements.
 Better decision-making due to:
o Creative problem-solving
o Flexible thinking
o Respect for others’ views
o Willingness to take risks

After Negotiation

 Greater satisfaction with the result.

 Stronger relationships and willingness to negotiate again.
 Builds emotional commitment for future cooperation.

Drawback of Positive Affect

 People may overestimate their own performance.

 Self-reported success may be biased.

2. Negative Affect in Negotiation

Before Negotiation

 People feeling negative (especially anger) plan to use competitive strategies.

 Less willingness to cooperate.

During Negotiation

 Trust decreases.
 Judgment becomes unclear.
 Focus shifts from agreement to revenge or winning.
 Negotiators ignore or misunderstand the other side’s interests.
 Leads to lower joint gains.

Outcomes

 More likely to reject good offers.

 Reduced joint benefits.
 Does not increase personal gains, even though negotiators feel aggressive.
 May accept bad deals with negative outcomes.

Possible Benefits of Negative Affect

 Controlled and justified anger can:

o Show seriousness
o Signal strong commitment or important needs
  In distributive (win–lose) negotiations, negative affect can sometimes be more
effective than positive affect.

Other Issues

 Loss of emotional control (anger, crying) leads to mistakes.

 Hidden hostility toward ethnic or gender groups can harm negotiations.

Key Point from Research

 Emotions do not always affect negotiation.

 Emotional impact depends on:
o Ability (no strong distractions or mental overload)
o Motivation (the negotiator cares about the outcome)

In Simple Words

 Positive mood helps cooperation, creativity, and long-term success.

 Negative mood, especially anger, usually harms negotiation, but may help in tough
win–lose situations if controlled.
 Managing emotions is very important for successful negotiation.

Effect of Partner’s Emotions in Negotiation

In negotiation, one person’s emotions influence the other person’s emotions and
behavior. There are two main ways this happens:

1. Reciprocal (Mimetic) Effect

 The other person copies or matches the emotion.

 Example: anger leads to anger, friendliness leads to friendliness.
 Research shows this happens more often than the complementary effect.

2. Complementary Effect

 The other person responds with a different but related emotion.

 Example: sadness or disappointment leads to compassion and cooperation.

A study by Butt et al. (2005) found that in real, multi-stage negotiations, people usually
respond reciprocally, not complementarily.
Effects of Specific Emotions on the Opponent

Anger

 Makes the opponent lower their demands.

 Causes the opponent to give more concessions, especially in win–lose (zero-sum)
negotiations.
 However, the opponent feels less satisfied with the negotiation.
 Triggers both:
o Dominating behavior (pushing back)
o Yielding behavior (giving in)

Pride

 Encourages the opponent to use integrative (win–win) strategies.

 Leads to more compromise and cooperation.
 Helps improve joint outcomes.

Guilt or Regret

 Creates a better personal impression of the negotiator.

 But it also encourages the opponent to ask for more (higher demands).
 Personal guilt makes negotiators more satisfied with what they achieved.

Worry or Disappointment

 Leaves a negative impression on the opponent.

 However, it causes the opponent to lower their demands.
 Can indirectly lead to concessions.

In Simple Words

 People usually mirror emotions during negotiation.

 Anger gets results but damages satisfaction.
 Pride supports cooperation.
 Guilt improves image but invites higher demands.
 Disappointment looks weak but can reduce opponent demands.
Complexity of Negotiation & Research Limits

Negotiation is a complex interaction involving communication, strategy, emotions, and

relationships. Because of this complexity, it is very hard to study negotiation perfectly,
especially emotions.

Why Most Negotiation Studies Use Laboratories

 Real negotiations are difficult to control.

 Labs allow researchers to study specific factors in a controlled way.

Problems with Lab Studies (Especially Emotions)

1. Emotions are “cold”

o Emotions in labs are artificially created.
o They are weaker than real-life “hot” emotions like anger or fear.
o Lab emotions are different from emotions felt in real negotiations.
2. No Self-Selection
o In real life, people choose negotiations that matter to them.
o This increases emotional involvement and motivation.
o In lab studies, participants are assigned tasks, reducing emotional
commitment.
3. Limited Range of Emotions
o Labs usually study only a few emotions.
o Real negotiations involve many emotions at the same time.
4. Difficulty Measuring Emotions
o If a third person observes emotions, some may be hidden on purpose.
o Self-report surveys help, but:
 They are often done only before or after negotiation.
 If done during negotiation, they may interrupt the process.

Team Negotiations

Because of globalization and modern business, negotiations are often done by teams
instead of individuals.

Advantages of Team Negotiation

 Teams combine more knowledge and experience.

 Complex negotiations are easier to handle.
 Different members can take different roles, such as:
o Talking
o Listening
o Note-taking
o Observing reactions
 Teams reduce mistakes and misunderstandings.
 Familiarity and support within the team improve confidence.