Differences Between Distributive Bargaining & Integrative Bargaining

by Evangeline Marzec, studioD
Use the appropriate negotiation strategy depending on the situation.

Use the appropriate negotiation strategy depending on the situation.

business deal(agreement) image by Alexey Klementiev from Fotolia.com

There are two main approaches to any negotiation situation: distributive and integrative strategies. Each are useful in specific contexts, and the same negotiator may use either strategy depending upon their goal. We encounter distributive negotiation every time we buy a car or ask for a discount on an as-is item. Integrative negotiations happen on an ongoing basis, such as agreeing to let our children go to bed an hour later in exchange for mowing the lawn.

Distributive Basics

Distributive negotiation is appropriate in "divide the pie" situations, when there is a fixed amount of resources and whatever one party gains, the other party loses. Usually it's employed when the parties don't know each other and don't believe they will need to develop a relationship with each other for use in the future. A distributive approach to negotiation is usually what we encounter when we make a purchase.

Distributive Tactics

In distributive bargaining, it's best to keep information to yourself while trying to get information out of the other party. Let them make the first offer, since this lets you know what they're willing to give up. Do tell them about alternatives you have, such as competing offers for what you're selling, or interest in a product that competes with the one they're selling if you're the buyer. But be willing to make concessions in order to reach a realistic outcome.

Integrative Basics

An integrative bargaining situation occurs when it's possible to produce a greater outcome together than either could reach on his own. It's used when the parties have a relationship or want to establish one, and when cooperation benefits both parties. There are often multiple issues to address, and the negotiations can be complex and ongoing. Most of us use integrative bargaining within our families and between business partners.

Integrative Tactics

Determine your list of priorities, and make a guess about the other party's priorities as well. Share information with each other, being honest about your priorities; often something critical to one side is a minor concession to the other, and vice versa. Find and offer solutions that produce the most gain for the other party as well as for yourself. Remember that you will be in other negotiation situations with the other side in the future, and be willing to compromise when needed to build goodwill for later.

About the Author

Evangeline Marzec is a management consultant to small high-tech companies, and has been in the video games industry since 2004. As a published writer since 1998, she has contributed articles and short stories to web and print media, including eHow and Timewinder. She holds a Master of Business Adminstration from Thunderbird School of Global Management.

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  • business deal(agreement) image by Alexey Klementiev from Fotolia.com
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