The main problem that confrnnts the players in a bargaining situation is the need to reach an agreement over exactly how to cooperate before their actual cooperation. Each player would like to reach some agreement that is as favorable to him as possible. It is conceivable that the players will reach an agreement successfully or fail to do so.
The theory of negotiation has two aspects. They are "efficiency and distribution properties".
In a word, negotiation is a basic human activity as well as a process people undertake everyday to manage their relationships such as a buyer and a seller, a husband and wife, children and parents. As the stakes in some of these negotiations are not very high, people need not have to get preparations for the process and the outcome. But in international business negotiations, the stakes are usually high, and people cannot ignore this fact, so they have to get preplans in a more careful way. Both parties in this kind of negotiation should contact each other so that they can get a better deal rather than simply accepting or rejecting what the other is offering. The whole process of negotiation is based upon the premise that both parties are interdependent, that is, one side cannot get what he (she) wants without taking the other into consideration. In the process of negotiation, there are no rules, traditions, rational methods or higher authorities available to resolve their conflict once it crops up.
But it is the basic activity of human being. It concerns the following elements.
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