Negotiation and Bargaining

Negotiation is the process of conferring with others to reach an agreement. Bargaining occurs when there is a dispute over the terms involved. A straightforward allocation of adequate resources would involve negotiation, but if there is a shortage of time, money, or materials, then the parties will bargain over the exact distribution to promote their own best interests. Collective bargaining [Page 1494]is a structured process where a group such as a union will negotiate with an employer as a single unit about terms of their employment contract.

The basic conditions for negotiation are that the parties are voluntary participants and there is a positive bargaining zone. Thus, there is no negotiation in mugging at gunpoint or when groceries are offered at a fixed price in the ...