ABSTRACT
The third type of bargaining is explored in this chapter. The common denominator is that the bargaining is based on rational behaviour from the negotiators. The chapter introduces John Nash’s Utility Theory and explores its basis for understanding the different values negotiators place on issues. Principled Negotiation by Fisher and Ury is also discussed in detail, looking at the four prescriptions and how some are valuable insights for real-life negotiations but others are flawed. The chapter looks at the positive lessons to be learned from this theoretical aspect to negotiation and how we can use some of them in our day-to-day negotiations.
