Distributive Bargaining

What is Distributive Bargaining?

 

‘Distributive Bargaining’ is a competitive bargaining technique in which one party gains only if another party loses. It is used mostly to negotiate fixed resources.

 

In this bargaining technique, all the parties bargain while taking into consideration the limited resources available. Hence, the final aim is not to create a win-win situation for everyone; instead, everyone involved will try to get the best option for their profit.

 

Distributive bargaining is what occurs when we try to buy any product in a store that does not have a fixed value. Consider an iron of MRP Rs. 1500. However, you might argue with the shopkeeper that it is being sold at Rs. 1000 elsewhere.

 

The shopkeeper might give a counteroffer of Rs. 1200 as his base rate. Here, both the parties are trying to know each other’s final value for the product. If the sale is done, that means the distributive bargaining technique worked for the one who got the maximum profit.

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