Negotiation is a dialogue between two or more parties to resolve points of difference, gain an
advantage for an individual or collective, or craft outcomes to satisfy various interests. The parties
aspire to agree on matters of mutual interest.[1] The agreement can be beneficial for all or some of
the parties involved. The negotiators should establish their own needs and wants while also seeking
to understand the wants and needs of others involved to increase their chances of closing deals,
avoiding conflicts, forming relationships with other parties, or maximizing mutual gains.[1] Distributive
negotiations, or compromises, are conducted by putting forward a position and making concessions
to achieve an agreement. The degree to which the negotiating parties trust each other to implement
the negotiated solution is a major factor in determining the success of a negotiation.
People negotiate daily, often without considering it a negotiation.[2][3] Negotiations may occur in
organizations, including businesses, non-profits, and governments, as well as in sales and legal
proceedings, and personal situations such as marriage, divorce, parenting, friendship, etc.
Professional negotiators are often specialized. Examples of professional negotiators include union
negotiators, leverage buyout negotiators, peace negotiators, and hostage negotiators. They may also
work under other titles, such as diplomats, legislators, or arbitrators. Negotiations may also be
conducted by algorithms or machines in what is known as automated negotiation.[4][1][5] In automated
negotiation, the participants and process have to be modeled correctly.[6] Recent negotiation
embraces complexity.[7]
Types
J. K. Paasikivi, Finnish Counselor of State and the
future President of Finland, arrived from negotiations in Moscow on October 16, 1939. From left to
right: Aarno Yrjö-Koskinen, Paasikivi, Johan Nykopp and Aladár Paasonen.
Negotiation can take a variety of forms in different contexts. These may include conferences between
members of the United Nations to establish international norms, meetings between combatants to
end a military conflict, meetings between representatives of businesses to bring about a transaction,
and conversations between parents about how to manage childcare.[8] Mediation is a form of
negotiation where a third party helps the conflicting parties negotiate, usually when they are unable
to do so by themselves. Mediated negotiation can be contrasted with arbitration, where conflicting
parties commit to accepting the decision of a third party. Negotiations in the workplace can impact
the entire organization's performance.[9]
