Creating Win – Win Scenarios
Not all negotiations are created equal. Sometimes you’re fighting over a single slice of pie — other times, you’re working together to bake a bigger pie.
This lesson will introduce the two primary types of negotiation:
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Distributive Negotiation – also known as win-lose or zero-sum
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Integrative Negotiation – also known as win-win or interest-based
Understanding the difference helps you choose the right mindset, tactics, and preparation strategy for the situation.
1. What is Distributive Negotiation?
Distributive negotiation is used when:
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There is a fixed amount of value (e.g., money, time, resources).
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One party’s gain is the other’s loss.
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The goal is to claim as much value as possible.
Examples:
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Haggling over the price of a car.
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Dividing a budget between departments.
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Negotiating a one-time contract with no future relationship.
It’s a competition over who gets more of the pie.
Key Characteristics:
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Short-term focus
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Limited trust and sharing
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Few issues at stake
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Strong opening offers and anchoring
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BATNA is critical
Common Tactics:
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Starting high or low
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Withholding information
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Playing hardball (if appropriate)
2. What is Integrative Negotiation?
Integrative negotiation is used when:
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You want to create value and not just divide it.
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There are multiple issues at stake (e.g., price, delivery, service, terms).
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There’s potential for collaboration and long-term relationships.
Examples:
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Building a partnership with a supplier.
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Negotiating employee benefits with your team.
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Working out a joint venture deal.
The goal is to solve a problem together, not just “win.”
Key Characteristics:
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Focus on interests, not just positions
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Information sharing (where appropriate)
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Creative problem solving
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Mutual trust and communication
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Exploring multiple options
Common Tactics:
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Asking open-ended questions
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Brainstorming solutions together
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Finding trade-offs (what matters more to each party)
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Seeking fairness and long-term value
3. Key Differences at a Glance
| Aspect | Distributive | Integrative |
|---|---|---|
| Mindset | Win-lose | Win-win |
| Goal | Claim value | Create and share value |
| Trust | Low | Moderate to high |
| Information sharing | Minimal | Selective and strategic |
| Issues involved | Usually one (e.g., price) | Multiple |
| Relationship | Less important | Very important |
| Example | Buying a used car | Negotiating a business partnership |
4. When to Use Each Approach
Use Distributive when:
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It’s a one-time transaction
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There’s no future relationship
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The issue is simple and zero-sum
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You need to protect against being taken advantage of
But still: stay respectful and professional, even if it’s competitive.
Use Integrative when:
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You want a long-term or repeat relationship
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You have complex issues to solve
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You value collaboration and innovation
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There’s room for creativity and trade-offs
Even in integrative negotiation, you should still know your limits and be ready to protect your interests.
5. Can You Combine Both? (Yes!)
Most real-life negotiations involve both distributive and integrative elements.
For example:
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In a job offer, salary might be distributive, but benefits, start date, remote work, and growth opportunities can be integrative.
This is called a mixed-motive negotiation — and it’s where skilled negotiators shine.
The key is to recognise which issues are fixed-sum, and which can be expanded or traded.
Conclusion: Choose Your Approach Wisely
Understanding the difference between distributive and integrative negotiation lets you adapt your strategy to the situation. Smart negotiators know when to compete, when to collaborate, and how to shift between the two.
Your preparation, tone, and tactics should match the type of negotiation you’re in — and the kind of outcome you want to create.