TAILIEUCHUNG - Lecture Purchasing and supply chain management (3/e): Chapter 14 - W. C. Benton

Chapter 14 - Bargaining and negotiations. Chapter 14 examines the important human interactions called bargaining and negotiation in a business setting. Bargaining occurs between individuals, groups, organizations, and countries. In this chapter we considered bargaining between two parties, each possessing resources the other side desires. | 1 Chapter 14: Bargaining and Negotiations Purchasing and Supply Chain Management, 3rd edition, Copyright 2013, W. C. Benton Jr., All rights reserved Content Bargaining Distributive bargaining Integrative bargaining Distributive bargaining experiment Formal negotiation 2 Bargaining Explicit bargaining An interaction where parties with certain disagreements confer and exchange ideas about a possible solution until a compromise is reached or the bargaining is terminated 3 Negotiation The preliminary discussion to bargaining The terms bargaining and negotiation have been used interchangeably. 4 Two-party Bargaining Bilateral monopoly system or two-party bargaining Bargaining that occurs between two parties who possess resources the other desires The 2 types of two-party bargaining: Distributive bargaining Psychology Integrative bargaining Economics 5 Distributive Bargaining Definition: Bargaining where the total gains is “distributed” between the two parties involved, and each party .

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