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Methods for Win-Win agreements (2. Logroll (Requires the parties to…
Methods for Win-Win agreements
1. Expand the Pie
work closely together, parties identify new & creative ways to expand available resources / generate new value obtained via negotiated agreement
Eg: seller offer buyer early access to new technology for inclusion in buyers' new products can help create new value
Eg: if the market embrace the new product, sales will increase, supplier will receive larger future orders
2. Logroll
Requires the parties to identify more than one issue where disagreement exists
Parties agree to trade-off the issues so that each party has one of its top-priority issues satisfied
A form of compromise in which each party gets more in those issues that are most important to him / her
Giving up more on those issues that are less critical yet are important to the other party
3. Use Nonspecific Compensation
One party achieve his objective on an issue, whereas the other receives something else of value as a reward for going along
Works only when the compensating party knows what is valuable to the other party & makes a reasonable offers for other party to agree
5. Cut The Costs for Compliance
Buyer gets a lower price as the parties work jointly to reduce seller's costs
Share transaction costs of doing business together
Buyer satisfies objective of getting a competitive price
Seller become more competitive in market / achieve higher margin with its new reduced cost structure
4. Find a Bridge Solution
involve inventing new options that satisfy each party's needs
seek to create solutions jointly that satisfy the interests & need of both parties