Negotiation

Distributive vs. Integrative Bargaining

Know whether you're splitting a fixed pie or growing it.

Distributive (win-lose) bargaining divides a fixed resource. Integrative (win-win) bargaining creates value so both sides gain. Most real negotiations are a mix — the skill is reading which is which.

When to use it

Early, to read the situation; and when a deal feels zero-sum, to look for integrative moves.

How to use it

1Ask: is this a fixed pie, or can we add value?
2For distributive issues, anchor with objective criteria.
3For integrative issues, trade across issues each side values differently.
4Sequence it: create value first, claim value second.

Takeaway

Expand the pie where you can, split it fairly where you can't.

Learn this in a course

Benefits, Benchmarks & Bargaining

Related frameworks

Principled Negotiation (Getting to Yes)

Interest-Based (Mutual Gains) Bargaining

BATNA & ZOPA

All frameworks