Reflections on The Limits of Integrative Bargaining

My purpose in The Limits of Integrative Bargaining was to bring a measure of clarity and discipline to the then-current discussion of integrative bargaining. Specifically, I sought to: 1. clarify the meanings of value creation and integrative bargaining so that the terms could be better put to use in the study, teaching, and practice of negotiations;...

Strengthening Integrative Bargaining

The task of identifying “seminal” works in any field is daunting. Doing this for a field like negotiation where contributions come from diverse disciplines and traditions makes the selection even more complex. Answers to three qualitative questions might determine the extent to which an article might be considered “seminal”:...

Integrative Negotiation: Paying the Price of Popularity

While I had read Gerald Wetlaufer’s The Limits of Integrative Bargaining (Limits) early on in my conflict studies, and noticed that my colleagues often included it on their reading lists, I had never realized its profound value—in insight, and in academic approach—until my students taught me its importance....

CommentsOversimplifying, Overselling, Overreaching

Gerald Wetlaufer’s The Limits of Integrative Bargaining reads like game theory. He speaks in the language of limits and domains. He breaks down value creation into three forms labeled with Roman numerals. He uses simple bilateral transactions between nonrepeat players (e.g., buying a used car) as the foundation for analysis. He assumes that negotiators are rational actors who define their self-interest as immediate pecuniary gain. And then, given these parameters, he argues that the rhetoric of win-win too often overpromises when it comes to value creation. The equation of claims to benefits does not balance....

The Limits of Integrative Bargaining

This article discusses integrative bargaining. Opportunities for integrative bargaining are often unrecognized and unexploited. As a result, both the parties to negotiations and society as a whole are worse off than would otherwise have been the case. The article offers three conclusions. First, opportunities for integrative bargaining are not nearly as pervasive as is sometimes authoritatively asserted. Second, the claim that opportunities for integrative bargaining make good behavior a simple matter of rational, pecuniary self-interest is not nearly as strong as is sometimes claimed, both because opportunities for integrative bargaining are less pervasive than has been asserted and because, even when such opportunities may exist, the case for good behavior is weaker than has been claimed. Third, and accordingly, the case for good behavior cannot rest entirely on pecuniary self-interest. The article then outlines the opportunities for integrative bargaining, which includes differences between the parties in terms of (1) their interests, (2) their projections concerning possible future events, (3) their willingness to accept risks, and (4) their time preferences regarding payment or performance.

A Study of Integrative Bargaining Model with Argumentation-Based Negotiation

E-commerce is increasingly competitive and there is a constant need for new approaches and technology to facilitate exchange. Emerging techniques include the use of artificial intelligence (AI). One AI tool that has sparked interest in e-commerce is the automated negotiation agent (negotiation-agent). This study examines such agents, and proposes an offer strategy model of integrative negotiation for a negotiation-agent with a focus on negotiation agent-to-human interaction. More specifically, a new offer strategy was developed based on the integrative bargaining model, which emphasizes the importance of exchanging information among negotiators and multi-issue negotiation that includes package offers to achieve an integrative (win-win) outcome. This study incorporated an argumentation-based negotiation and the negotiation tactic of multiple equivalent simultaneous offers, which was programmed into the negotiation-agent. An experiment was conducted performing 49 negotiation-agent-to-human negotiations over three issues in online purchase tasks to demonstrate the effectiveness of the proposed strategy. Experimental results indicated that the proposed offer strategy with agent negotiation can enhance the persuasiveness of an offer and the performance of negotiation outcome (human counterpart’s perception toward negotiation process, opponent–agent and desire for future negotiation). The findings confirmed the effectiveness of the proposed design and demonstrated an innovative approach to e-commerce transactions.