Why Joint Gains Are Important in Negotiations
Negotiation is a social process that occurs whenever people cannot achieve their own goals without the cooperation of others (Thompson, Wang, & Gunia, 2010). Negotiation outcomes include the individual gains of the negotiators and their joint gains, defined as the sum of all negotiators’ individual gains over and above their Best Alternative to a Negotiated Agreement (BATNA; Fisher & Ury, 1981).
Thus, joint gains measure the total value “created” by negotiating. Joint gains maximization has been the primary criterion for evaluating negotiation outcomes since Luce and Raiffa’s (1957) Games and Decisions. Economists and psychologists who study negotiations emphasize joint gains maximization for several reasons. Achievement of joint gains implies that (a) value has not been left unclaimed on the table; (b) trade-offs satisfying both parties’ interests have occurred; (c) agreements are more likely; and (d) agreements will promote harmonious, long-term relationships.1| Lens | Outcome | Process | Culture | Time |
| Question | How can we conceptualize negotiation strategy and outcomes? | How does negotiation strategy affect joint gains? | How does culture affect negotiation strategy and joint gains? | What are the dynamics of negotiation strategy? |
| Focus | Outcome of a negotiation | Realization of joint gains | Cross-cultural variation in strategies and joint gains | Development of negotiation strategy over time |
| Insight | There are two elemental strategies: integrative and distributive. | • Distributive strategy hinders insight and detracts from joint gains. • Integrative strategy leads to insight and joint gains. • Aspiration level positively relates to insight and joint gains. | • Cross-cultural variations in communication style and trust affect the use of negotiation strategy and the relationship between strategy and joint gains. • Strategy is most clearly conceptualized by focusing on concrete behaviors: Substantiation and Offers (S&O) a.k.a. positional negotiating, and Questions and Answers (Q&A) a.k.a. informationsharing. | • Negotiations often open with a focus on positions and then move to informationsharing once it becomes clear that there is no agreement based on positions. • Negotiators blend different strategies in complex patterns as they progress through negotiation toward the end state— agreement or impasse. |
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