Question

what are some of the effects of status on the conduct of bargaining? what are some of the disadvantages to paying attention to secondary status characteristics in negotiation

Answer 1

Distributive bargaining is sometimes called position negotiation or strong agreement and attempts to allocate a fixed share of benefits. Distributive negotiation operates on a zero-sum condition and implies that any profits one party earns are spent on the other and vice versa. For this reason, distribution negotiations are sometimes referred to as loss of profits due to the assumption that one person's gain is the loss of another. Examples of distributor bargains include buying prices on the open market, including car or home price negotiations.

During negotiations, the dealers often take a final or fixed stance, knowing it will not be accepted, and then trying to get back down as far as possible before reaching an agreement. Distributor negotiators view negotiations as a fixed-price allocation process. Distributed distribution negotiations often involve people who have never had an interaction before, and they will not repeat them in the future, though all negotiations usually have a distribution element.

In the distribution method, each negotiator fights the largest piece, so the parties tend to think of themselves as more rivals than partners and grab a faster line. Given that perspective theory shows that people value losses more than profits and are more susceptible to losses, negotiation of concessions is likely to be brighter and less productive.