Question

Strategic bargaining is focused on the rules of the game. However, in real-life situations the rules are not always clearly pronounced. This form of bargaining works best when all parties are sure that the rule will be followed. Strategic bargaining often focuses on who moves first and who can commit to a bargaining position. An example of this type of bargain could be when two business partners are negotiating a new business contract. Both want to get the most of out the contract, so the best approach would be a strategic bargaining approach. In non-strategic bargaining, alternatives to bargaining are explored. This method focuses on the gains from agreement. Anything you can do to increase your opponent’s position will give you a better bargaining position. One example of non-strategic bargaining is when you negotiate for a raise when you already have a high-paying job offer. You offer your employment to stay if you can receive a raise. If not, you may have to accept your new offer.  Both methods are beneficial in different situations. When there are set rules, usually strategic bargaining works out best. When the rules are unclear, often non-strategic bargaining works out better. It is best to analyze your specific situation to determine what method to use in negotiations.

Please respond in 100-150 words

Answer 1

• Bargaining is a process of reaching a mutually acceptable solution among all parties to the conflict at the end of the negotiation process. Strategic bargaining help to resolve the conflict through proper communication and understanding of the situation.
• This is very important set of situations of strategic interaction, since bargaining is regarded primarily as a situation in which small number of parties try to split some gains from interactions.Outcome of bargaining "games" dependent on rules of the game in real life, the rules always not clear.
• However there is differences between the bargaining and the negotiation. Bargaining is a group action involving negotiation between the representative of employees and the management,on the matters relating to employment, so as to arrive at an agreement
• where, negotiation refers to a process which allows people of different interest to arrive at a mutually acceptable agreement on an issue, but at the same time seeking to increase the benefit to be gained for their interest groups.

The strategic bargaining use when the rules are clear and the non strategic bargaining use when the rules are not clear in the negotiation. Which method to be choose is completely depends on the matter of fact of such situation.

example: suppose you have started a business in which your goal is to earn profit, here your aim and rules are very clear so you can use the strategic bargaining method, however if you started new business even u already have an already existed business which is in loss currently, if your old business continues this way than you are going to put all resources in the current new business, in this case your goal and rules are not clear than you will use the non-strategic bargaining method in negotiation. However for best result you should analyse your situation and than decide which method should be used for the negotiation.