ABSTRACT
The political science and business worlds have long focused on the formal aspects of negotiation. Luecke (2003) identified two types of negotiation, distributive and integrative. Distributive negotiation is best described as a situation where 'parties compete over the distribution of a fixed sum of value'. The second type, integrative negotiation, is where 'the parties cooperate to achieve maximum benefits by integrating into an agreement'. This chapter presents a theoretical framework that contains many aspects of these mechanisms, called negotiated order theory. Negotiated order theory is a process-oriented perspective stressing the continuous emergence of organizational arrangements out of the ongoing [transactions] of participants. The chapter further discusses game theory which has developed a philosophical and mathematical approach that seeks to explain human strategic thought. In the context of this project it is best to think of game theory as the study of the strategies that individuals employ within each transaction.
