A meaningful role for negotiation vanishes the closer the situation becomes to costless dominance or a perfect market. By contrast, the negotiation potential increases (1) the less chance there is that any given player can fully achieve its objectives at no cost by unilateral action or (2) the less perfect the market, meaning smaller numbers and different kinds of buyers and sellers, more avenues for product differentiation, and so on. In either case, a BATNA assessment suggests the extent of negotiation’s potential role in a given situation, from nil to vast.
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