Modeling Distributive and Integrative Negotiations

Abstract

Two main types of negotiation processes can be distinguished, distributive and integrative. While the distributive process consists primarily of concession making, the integrative process involves both concession making and a search for mutually profitable alternatives. Thus the meaning of “flexibility” is not always the same: in distributive negotiations, it means “readiness to make concessions”; in the integrative negotiations setting, it means in addition “readiness to engage in the search process.” Computer simulations suggest that the distributive process is faster but that the integrative process is potentially more productive in that it can increase the chances of an agreement. In order for integrative negotiation to fulfill its potential, however, the search engaged in must be joint, and during the search, the adversaries must interact face to face. Distributive negotiation can also be made more productive by having the adversaries interact face to face, under conditions that emphasize their similarities.