Process Analysis
Process analysis is the theory closest to haggling. Parties start from two points and converge through a series of concessions. As in strategic analysis, both sides have a veto (e.g. sell, not sell; pay, not pay). Process analysis also features structural assumptions, because one side may be weaker or stronger (e.g. more eager to sell, not willing to pay a certain price). Process Analysis focuses on the study of the dynamics of processes. E.g. both Zeuthen and Cross tried to find a formula in order to predict the behaviour of the other party in finding a rate of concession, in order to predict the likely outcome.
The process of negotiation therefore is considered to unfold between fixed points: starting point of discord, end point of convergence. The so called security point, that is the result of optional withdrawal, is also taken into account.
Read more about this topic: Negotiation Theory
Famous quotes containing the words process and/or analysis:
“Because her instinct has told her, or because she has been reliably informed, the faded virgin knows that the supreme joys are not for her; she knows by a process of the intellect; but she can feel her deprivation no more than the young mother can feel the hardship of the virgin’s lot.”
—Arnold Bennett (1867–1931)
“A commodity appears at first sight an extremely obvious, trivial thing. But its analysis brings out that it is a very strange thing, abounding in metaphysical subtleties and theological niceties.”
—Karl Marx (1818–1883)