Differences between distributive bargaining and integrative bargaining

In a negotiation that involves distributive bargaining (Claiming Value) the parties positions are typically in direct opposition to each other. Instead of focusing on their mutually beneficial interests, they fight for their own position. In some situations one party will be a clear winner while the other party will be a clear loser. Each party is only focusing on getting as close to their desired result at the expense of the other party. This type of winner or loser bargaining can damage or destroy a relationship. It should be avoided when parties are interdependent and maintaining a mutually beneficial relationship is extremely important. In situations where both bargain softly to try to maintain the relationship, both parties compromise and end up losing out because neither party gets what they desired. This type of bargaining does not produce efficient result.

This type of bargaining is useful when the party utilizing it values the substance of the negotiation more than the relationship with the other party. It is also valuable when at the end of the integrative bargaining phase to distribute value.

.
Integrative bargaining (creating value) allows parties to strengthen their relationship and possibly get what they substantively out of the bargain. During integrative bargaining, parties seek to form an alliance to attack the problem is a way that allows them to find a mutually beneficial solution to a common problem. This can include finding new resources or using existing resources in a mutually beneficial way. By working together and looking past positions to see each others interests, they can often find solutions that will accomplish the objectives of both parties. Integrative bargaining focuses first on ways to create value for both parties and but usually their is still a distributive bargaining phase left at the end of integrative bargaining.

This is extremely valuable when parties are interdependent of each other. Finding ways to create a win-win situation also provides leverage to gain agreement in areas that are win-lose.