Distributive Negotiation: What Is Distributive Negotiation?

Distributive negotiation is a type of negotiation in which parties bargain for shares of a fixed resource. Also known as distributive bargaining, it can be used in labor negotiations, sales, and in any problem-solving scenario where people are trying to divvy up things of value. Distributive negotiations can take place between two people, or they can be multiparty negotiations where more than one entity seeks a slice of the pie.

To engender distributive negotiation success, approach the process with these negotiation strategies in mind.

1. 1. Push for win-win agreements. Amateur negotiators often err in thinking they should employ zero-sum negotiation tactics. These lead to win-lose agreements where one party comes out on top and the other is left with nothing. Social psychology indicates that zero-sum games can poison long-term relationships, making future deals unlikely.
2. 2. Listen to the other negotiators. One of the best negotiation skills you can bring to a deal is the ability to closely listen to your negotiating partners and interpret their true needs and requirements. You may gain new information that you didn't have when you entered the room. At the very least, this bargaining approach will grant you a better sense of where your business relationship truly stands.
3. 3. Think beyond the short term. Successful negotiations don't merely account for the amount of value an asset can provide in the short term. Wise negotiators look further into the future and think about asset values over the course of many years. By creating value for assets that last well into the future, negotiators can widen their tunnel vision and start collaborating on a split that truly works for all parties.
4. 4. Find a best alternative to a negotiated agreement. A BATNA represents the best alternative option if a deal falls apart. Walking into a negotiation already knowing your BATNA can improve your negotiation techniques because you'll know exactly how much you stand to lose if the talks break down. Knowing the other party's BATNA can also spur effective bargaining strategies since you'll also understand the stakes for the other side.
5. 5. Know your reservation point. The reservation point is the point at which you turn down an offer and resort to your BATNA. For instance, you may decide that you refuse to take less than fifty-one percent equity in a company you'd be co-founding with another entrepreneur. If, after much haggling, your would-be partner still won't offer you more than fifty percent, you've hit your reservation point and it's time to reject the deal.
6. 6. Find the zone of possible agreement, or ZOPA. A ZOPA is the bargaining range in which both you and the other side can agree to close a deal. To find a ZOPA in a principled negotiation, you need to have a realistic sense of your own goals and the other party's goals. Work to find that zone where both sides can claim victory. You may find it yields a lot more value than scorched-earth distributive bargaining tactics.

Integrative negotiation, or integrative bargaining, shares many commonalities with distributive negotiation. Overall, however, integrative negotiation can be a bit more complex.

• Distributive negotiation focuses on dividing a single resource. Distributive negotiation, as defined by researchers at the Program on Negotiation at Harvard Law School, focuses on divvying up a fixed resource. Often that resource is money or a claim to ownership. In some conflict management situations, it can be something more personal, like shared custody of a child.
• Integrative negotiation combines multiple assets into a broader deal. Integrative negotiation, as described by researchers at Harvard Law School and Harvard Business School, involves bargaining over many elements at once. For instance, when considering an offer for a new job, you might bargain with your employer about salary, benefits, job title, levels of control, time off, and support staff all at the same time. Under this model, effective negotiations might mean yielding one element (like salary) in exchange for something else (like status or power). In integrative negotiations, more than one asset is on the table at a time.

To understand how distributive negotiations work in the real world, consider these common scenarios.

1. 1. Child custody: Custody is a limited asset. Separated parents have a limited number of hours they can spend with their shared child every week. Whether they divide custody civilly between themselves, whether they do it with a mediator in a conflict resolution scenario, or whether they do it in front of a judge, they are engaging in a distributive negotiation.
2. 2. Songwriting credit: Imagine two songwriters working on a song together. One of them started the song and had a good deal of it written before she shared it with her writing partner. Both agree that the initial songwriter deserves more than fifty percent of the credit, but the exact percentage will be subject to a distributive negotiation since the co-writer will also want appropriate recognition for her own efforts.

Learn more about negotiation strategies and communication skills from Career FBI hostage negotiator Chris Voss. Perfect tactical empathy, develop intentional body language, and get better results every day with the MasterClass Annual Membership.