4.2 Concession Strategies and Tactics

Concession strategies are key tools in distributive negotiations. They involve making strategic trade-offs to reach agreements while protecting your interests. Understanding these techniques helps negotiators navigate the give-and-take process effectively.

From reciprocity to salami tactics, negotiators have various methods to manage concessions. Timing, rate, and conditions of concessions all play crucial roles. Mastering these strategies can lead to more favorable outcomes in competitive bargaining situations.

Concession Techniques

Reciprocity and Diminishing Concessions

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• Reciprocity involves making concessions in exchange for comparable concessions from the other party
  • Encourages mutual cooperation and fairness in negotiations
  • Can be used to build trust and goodwill between parties
• Diminishing concessions strategy reduces the size of concessions over time
  • Starts with larger concessions and gradually decreases their magnitude
  • Signals a approaching the negotiator's reservation point
  • Helps maintain momentum while protecting against excessive concessions

Bracketing and Nibbling

• Bracketing technique involves making an initial offer far from the target point
  • Creates a wide range for potential compromise
  • Allows room for significant concessions while still achieving desired outcome
  • Can be risky if the initial offer is perceived as unreasonable
• Nibbling strategy focuses on making small, incremental concessions
  • Gradually moves towards agreement through a series of minor adjustments
  • Can be effective in prolonged negotiations or when dealing with complex issues
  • Helps maintain flexibility and avoid large, potentially costly concessions

Salami Tactics and Bogey

• Salami tactics involve breaking down a large concession into smaller, more palatable pieces
  • Makes concessions appear less significant when presented individually
  • Can help overcome resistance to larger concessions
  • Requires careful planning to ensure all necessary concessions are made
• Bogey technique uses a false objection or concern as a negotiation tool
  • Presents a non-existent or exaggerated issue to gain leverage
  • Can be used to extract additional concessions from the other party
  • Requires caution as it may damage trust if discovered

Strategic Concession Considerations

Concession Rate and Trade-offs

• Concession rate refers to the pace and frequency of concessions made during negotiations
  • Faster rates can lead to quicker agreements but may result in suboptimal outcomes
  • Slower rates can allow for more careful consideration but risk stalling negotiations
• Trade-offs involve exchanging concessions in different areas to reach a mutually beneficial agreement
  • Requires identifying areas of differing priorities between parties
  • Can lead to creative solutions that satisfy both parties' key interests
  • Helps overcome impasses by finding alternative ways to create value

Concession Timing and Conditional Concessions

• Concession timing strategically determines when to make concessions during negotiations
  • Early concessions can build goodwill but may weaken bargaining position
  • Late concessions can maintain leverage but risk deadlock or breakdown in negotiations
  • Optimal timing depends on the specific context and dynamics of the negotiation
• Conditional concessions are offers made contingent on specific actions or reciprocal concessions
  • Links concessions to desired outcomes or behaviors from the other party
  • Can be used to test the other party's commitment or willingness to compromise
  • Helps ensure a balanced exchange of concessions throughout the negotiation process