Table of Content

1.  Introduction  3

2.  The Nature of Negotiation  3

2.1  The Two Styles of Negotiating  4

3.  Conflicts  4

3.1  Cultural Differences  5

4.  Cooperation and Ethics  6

4.1  “Better Ways to Cut a Cake  7

4.2  Mechanism Design  8

4.3  Enron Scandal  10

5.  Conclusion  12

  Bibliography  

1. Introduction

Negotiating is essential. The world, nowadays, is more and more interactive and we find

One can find a lot of interesting information about negotiation and its diverse tactics to

It’s about the conflict of the individual in ordinary life and the decision to cooperate or

The purpose of this paper is based on the nature of negotiation and should give an

2. The Nature of Negotiation

Negotiation is the process of bargaining between two or more parties or according to a

"The reason you negotiate is to produce something better than the results you can obtain without negotiating [...]”

Individuals search for their best possible outcome and they do it by trying to win the

According to Professor Moore “there are two styles of negotiating: competitive and cooperative”.

The competitive style is also called adversarial, positional or hard bargaining. It is The cooperative style or soft bargaining on the other hand is based on a win-win BATNA protects both parties “from accepting terms that are too unfavorable and from

3. Conflicts

Conflicts are an indispensable attribute of every social unit. There is no social unit without any conflict.

Conflicts can be classified as functional and dysfunctional and normaly arise when there

¹ BATNA is a term created by Fisher, Ury (1981)

Other conflicts might be caused by the relationship of the parties themselves,

Different cultural backgrounds can also play a role, but are not necessarily a reason for a

Even though a conflict can arise apart from different cultural backgrounds, there are

Factors that influence international negotiations are for example:

• Differences in international economics

• Foreign governments and bureaucracies (e. g. taxes)

• Instability

• Ideology

• General cultural differences (gender, age, hierarchy, cultural dimension)

Different countries have different economics and different governmental styles, as well

The amount of influence certain factors have, like corruption in less-developed