What characterizes distributive bargaining?

Prepare for the International Business Administration 7.0 Exam with a focus on communication and negotiation. Enhance your skills with engaging questions and detailed explanations. Ensure your success!

Distributive bargaining is characterized by a focus on individual interests, where parties typically vie for a fixed amount of resources or advantages, resulting in a competitive, win-lose scenario. In this type of negotiation, the goal is for each party to claim as much value as possible, often at the expense of the other party's outcomes. This approach is often used in situations where the resources, such as money or contracts, are limited, and each party aims to maximize their own share.

The nature of distributive bargaining aligns well with scenarios like salary negotiations or competitive tendering, where each party seeks to achieve the best possible outcome for themselves rather than collaborating for mutual benefit. In contrast to other negotiation styles that prioritize collaboration or long-term relationships, distributive bargaining is typically transactional and more focused on the immediate gains of the negotiating parties. This clearly distinguishes it from approaches that emphasize mutual gains or cooperative relationships.

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