Negotiation

Negotiation is a mutual decision-making process between two or more people concerning the allocation of scarce resources. The scarce resources could be money, time, services, goods, or anything that is perceived to be of value. The people involved in the negotiation are known as the parties. For example, a buyer and seller might negotiate the price of a car. Similarly, an employee and employer might negotiate a salary and benefits package or two roommates might negotiate chores and rent amounts.

Negotiation is a mixed-motive enterprise because it involves both cooperation and competition. Cooperation is involved because the parties to the negotiation often need one another to consummate an agreement. For example, if a seller demands too high a price to sell a home or apartment, the ...