Negotiations is an Agreement to Exchange

Negotiation is a communication in which the parties seek agreement to an exchange between them.

The principle underlying all negotiations is that each party gets something (from the exchange) that they would not otherwise have.

When parties negotiate, they usually expect give and take. While they have interlocking goals that they cannot accomplish independently, they usually do not want or need the same thing. This interdependence can be either win-lose or win-win in nature and the type of negotiation that is appropriate will vary accordingly. The disputants will either attempt to force the other side to comply with their demands, to modify the opposing position and move toward compromise or to invent a solution that meets the objectives of all sides.

The nature of their interdependence will have a major impact on the nature of their relationship, the way negotiations are conducted and the outcomes of these negotiations.

I negotiate to buy a car. The seller gets my money, I get the car. Without the negotiation, neither of us would have what we sought.

The benefit I will derive from owning the car will be very different from the benefit that they derive from the money – but we both benefit from the negotiation. We can say, therefore, that:

A negotiation aims to deliver benefits to each party through the agreed exchange.

There is no presumption in our definition of a negotiation that it is either ‘fair’ or delivers ‘happiness’ – merely that there is an agreed exchange.

In reality, negotiating between the lesser of two evils happens all the time.