IDEAS home Printed from https://ideas.repec.org/a/spr/grdene/v10y2001i3d10.1023_a1011210015279.html
   My bibliography  Save this article

On Creating and Claiming Value in Negotiations

Author

Listed:
  • Mehmet Bac

    (Bilkent University)

Abstract

This paper presents a negotiation model that includes value creation. It shows that creative negotiation efforts tend to intensify toward the deadline, and that the deadline is determined endogenously by the tension between two motives, creating more value and claiming from existing value. When the parties can present “misleading” offers in order to claim rather than create value, the outcome in early negotiation rounds may display an impasse where any proposal is rejected without inspection, while negotiation activities such as value creation through “sincere” offers and inspection of clauses intensify toward the deadline.

Suggested Citation

  • Mehmet Bac, 2001. "On Creating and Claiming Value in Negotiations," Group Decision and Negotiation, Springer, vol. 10(3), pages 237-251, May.
    • Handle: RePEc:spr:grdene:v:10:y:2001:i:3:d:10.1023_a:1011210015279
    DOI: 10.1023/A:1011210015279
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1023/A:1011210015279
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1023/A:1011210015279?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Inderst, Roman, 2000. "Multi-issue Bargaining with Endogenous Agenda," Games and Economic Behavior, Elsevier, vol. 30(1), pages 64-82, January.
    3. James K. Sebenius, 1992. "Negotiation Analysis: A Characterization and Review," Management Science, INFORMS, vol. 38(1), pages 18-38, January.
    4. Frankel, David M., 1998. "Creative Bargaining," Games and Economic Behavior, Elsevier, vol. 23(1), pages 43-53, April.
    5. Mehmet Bac, 2000. "note: A note on efficient signaling of bargaining power," International Journal of Game Theory, Springer;Game Theory Society, vol. 29(1), pages 119-126.
    6. Weinberger, Catherine J., 2000. "Selective Acceptance and Inefficiency in a Two-Issue Complete Information Bargaining Game," Games and Economic Behavior, Elsevier, vol. 31(2), pages 262-293, May.
    7. Mehmet Bac, 2000. "Signaling bargaining power: Strategic delay versus restricted offers," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 16(1), pages 227-237.
    8. Kalyan Chatterjee & Larry Samuelson, 1987. "Bargaining with Two-sided Incomplete Information: An Infinite Horizon Model with Alternating Offers," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(2), pages 175-192.
    9. Lutz-Alexander Busch & Ignatius J. Horstmann, 1999. "Signaling via an agenda in multi-issue bargaining with incomplete information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 13(3), pages 561-575.
    10. Anat R. Admati & Motty Perry, 1991. "Joint Projects without Commitment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 259-276.
    11. Mehmet Bac, 1996. "Incomplete information and incentives to free ride," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(4), pages 419-432.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olivier Bochet & Manshu Khanna & Simon Siegenthaler, 2024. "Beyond Dividing the Pie: Multi-Issue Bargaining in the Laboratory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(1), pages 163-191.
    2. Agndal, Henrik, 2007. "Current trends in business negotiation research: An overview of articles published 1996-2005," SSE/EFI Working Paper Series in Business Administration 2007:003, Stockholm School of Economics.
    3. Michael J. Cotter & James A. Henley, 2017. "Gender Contrasts in Negotiation Impasse Rates," Management, University of Primorska, Faculty of Management Koper, vol. 12(1), pages 3-25.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Busch, Lutz-Alexander & Horstmann, Ignatius J., 2002. "The game of negotiations: ordering issues and implementing agreements," Games and Economic Behavior, Elsevier, vol. 41(2), pages 169-191, November.
    2. In, Younghwan & Serrano, Roberto, 2004. "Agenda restrictions in multi-issue bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 53(3), pages 385-399, March.
    3. Flamini, Francesca, 2007. "First things first? The agenda formation problem for multi-issue committees," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 138-157, May.
    4. Alejandro Caparrós, 2016. "Bargaining and International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 5-31, September.
    5. Sgobbi, Alessandra & Carraro, Carlo, 2007. "Modelling Negotiated Decision Making: a Multilateral, Multiple Issues, Non-Cooperative Bargaining Model with Uncertainty," Economic Theory and Applications Working Papers 8224, Fondazione Eni Enrico Mattei (FEEM).
    6. Roberto Serrano, 2007. "Bargaining," Working Papers 2007-06, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    7. Canidio, Andrea & Karle, Heiko, 2022. "The focusing effect in negotiations," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 1-20.
    8. Rudolf Vetschera & Michael Filzmoser & Ronald Mitterhofer, 2014. "An Analytical Approach to Offer Generation in Concession-Based Negotiation Processes," Group Decision and Negotiation, Springer, vol. 23(1), pages 71-99, January.
    9. Martin Bichler & Gregory Kersten & Stefan Strecker, 2003. "Towards a Structured Design of Electronic Negotiations," Group Decision and Negotiation, Springer, vol. 12(4), pages 311-335, July.
    10. Harstad, Bård, 2021. "A Theory of Pledge-and-Review Bargaining," Memorandum 5/2022, Oslo University, Department of Economics, revised 21 Jun 2021.
    11. Anita Gantner, 2007. "Bargaining, Search, and Outside Options," Working Papers 2007-16, Faculty of Economics and Statistics, Universität Innsbruck.
    12. Stefan Kohler, 2012. "Incomplete Information about Social Preferences Explains Equal Division and Delay in Bargaining," Games, MDPI, vol. 3(3), pages 1-19, September.
    13. Aviad Heifetz & Clara Ponsati, 2007. "All in good time," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(4), pages 521-538, April.
    14. Eric T. Anderson, 2002. "Sharing the Wealth: When Should Firms Treat Customers as Partners?," Management Science, INFORMS, vol. 48(8), pages 955-971, August.
    15. Marie-Claire Villeval & Manfred Konigstein, 2005. "The Choice of the Agenda in Labor Negotiations: efficiency and behavioral considerations," Working Papers 0508, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    16. Helmut Rainer & Thomas Siedler, 2009. "O Brother, Where Art Thou? The Effects of Having a Sibling on Geographic Mobility and Labour Market Outcomes," Economica, London School of Economics and Political Science, vol. 76(303), pages 528-556, July.
    17. Thomas Hellmann, 2000. "Entrepreneurship and the Process of Obtaining Resource Commitments," Econometric Society World Congress 2000 Contributed Papers 0399, Econometric Society.
    18. Chakravorty Shourjo, 2019. "Representation in Multi-Issue Delegated Bargaining," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 19(1), pages 1-12, January.
    19. Maxim Mai & Vladimir Smirnov & Andrew Wait, 2014. "Ownership, Access, and Sequential Investment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(1), pages 203-231, February.
    20. Caruana, Guillermo & Einav, Liran & Quint, Daniel, 2007. "Multilateral bargaining with concession costs," Journal of Economic Theory, Elsevier, vol. 132(1), pages 147-166, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:grdene:v:10:y:2001:i:3:d:10.1023_a:1011210015279. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.