Distributive Bargaining

Expanding the Pie

Distributive bargaining is a negotiation method in which two parties attempt to divide a mutual pool of resources, to try and maximize their share of the distribution. Distributive bargaining is described as a “win-lose” negotiation because one side gains something at the expense of the other party. In other words, what is won by one is lost by the other. It is a tough negotiation style because it is usually a highly competitive, and exhaustive process intended to reach a formal, or written agreement.

The general nature of distributive bargaining is to maximize each party’s share of the fixed resource. As a result, both parties may use a variety of strategies including using intimidation, covering the real purpose, falsifying evidence, or even lying and using power if they see power-imbalance is in their favor.

An example would be Septa Union threatening to strike over contract negotiations. A strike, which usually takes place in response to employee complaints, causes a company to lose money and the employees who refuse to work. While it may not seem like a distributive bargaining, since either the company or the employees benefit from the strike, it usually results in a change of contract to benefit the employees in the long run.

It is always important to know what style of negotiation to use prior to a meeting. Many negotiators will view any situation as distributive and therefore will use distributive strategies and tactics, even though it may not best serve their long-term interests.

It is important to recognize, however, that sometimes the parties do have a past and a future relationship.

I lived in Iran, where my parents are from, for several years and one of the most common and natural part of the culture is constant bargaining. Whether it is