What is the Difference Between Negotiation and Bargaining?

The main difference between negotiation and bargaining lies in their approach and scope. Here are the key differences between the two:

1. Scope: Bargaining is typically focused on price and is more limited in its approach, while negotiation involves consideration and deliberation over multiple issues of a deal. In other words, bargaining is about getting the best price, while negotiation is about meeting the real need.
2. Perspective: Bargaining is a discussion about what the other side wants, whereas negotiation is a discussion about why they want it. Negotiation involves understanding the underlying interests and needs of both parties, which allows for a more comprehensive and satisfying resolution.
3. Long-term vs. short-term: Negotiation has the power to settle conflicts permanently, while bargaining has a limited ability to break a negotiation deadlock quickly. Bargaining is often used in highly competitive situations, but it may not be the best approach for addressing more complex disputes or finding long-term solutions.

To summarize, negotiation is a more comprehensive and strategic approach that considers multiple issues and the underlying interests of both parties, while bargaining is primarily focused on price and is more limited in scope. Although both concepts are related, negotiation is often preferred in situations that require a deeper understanding of the parties' needs and a more holistic approach to reaching an agreement.

Comparative Table: Negotiation vs Bargaining

Here is a table comparing the differences between negotiation and bargaining:

In summary, negotiation focuses on finding a win-win outcome, creating value for both parties, and building trust, while bargaining is about achieving a competitive advantage and claiming value for one party.