Negotiations vs. Confrontation: A Possible Explanation of the Empirical Results
نویسندگان
چکیده
A recent book promoting negotiations as an alternative to confrontations cites the empirical evidence that in business situations, confrontational attitude leads, on average, to a 75% loss in comparison with negotiations. An additional empirical fact is that only in 10% of the cases, negotiations are not possible and confrontation is inevitable. 1 Formulation of the Problem A recent business-oriented book [1] by Professor Stuart Diamond, by one of the world’s leading experts in negotiations cites two empirical facts: • that in business situations, confrontational attitude leads, on average, to a 75% loss in comparison with negotiations, and • that only in 10% of the cases, negotiations are not possible and confrontation is inevitable. In this paper, we provide a possible explanation for these empirical results. 2 Why Confrontational Attitude Leads, on Average, to a 75% Loss Let us first explain why confrontational attitude leads, on average, to a 75% loss in comparison with negotiations. A 75% loss means that businesses with a confrontational attitude get, on average, 4 times less than businesses that actively involve in negotiations. From the game-theoretic viewpoint (see, e.g., [4]) a confrontational approach means considering each conflict situation as a zero-sum game, ignoring possible “win-win” outcomes – when both sides gain. From this viewpoint, in general, we can have four possible outcomes:
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