Bargaining is a fundamental negotiation process where a buyer and seller engage in discussion to agree on the price and terms of a transaction. It involves interactive communication where both parties present their positions and work toward a mutually acceptable outcome through compromise.
The bargaining process follows a structured sequence of steps. It begins with preparation where parties identify their goals and research market conditions. Then comes the opening phase with initial offers, followed by discussion and information exchange. Counter-proposals are made as parties refine their positions, ultimately leading to a final agreement.
There are two main types of bargaining. Distributive bargaining is a zero-sum game where one party's gain equals the other's loss, like haggling over price. Integrative bargaining seeks win-win solutions where both parties can benefit by expanding the total value available.