Negotiation Management, Analysis and Support
Distributive Negotiations		7
Single issue negotiations

Buyer's and seller's surplus

is the difference between their RV and the agreed upon price.

 

Why is this a distributive bargaining exercise?

Each side wishes to get more, that is wants to maximize their surplus, i.e.,

Buyer’s surplus = RV_Buyer - Price = $40,000 - Price
Seller’s surplus = Price - RV_Seller = Price - $18,000

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