Open AccessNegotiating strategy: importance of the market definition
Author(s) -
Kęstutis Peleckis,
Valentina Peleckienė,
Edita Leonavičienė
Publication year - 2019
Language(s) - English
Resource type - Conference proceedings
DOI - 10.3846/cibmee.2019.079
Subject(s) - negotiation , competition (biology) , originality , function (biology) , game theory , industrial organization , business , marketing , economics , knowledge management , management science , computer science , microeconomics , qualitative research , political science , sociology , ecology , social science , evolutionary biology , law , biology
Purpose – the purpose of the article is to examine how the extent of competition in the market affects thebalance of bargaining powers of market participants. This often results in negative consequences for both buyers andsuppliers. This study has important theoretical and practical implications. The authors made an analysis of existingtheory and practice on negotiation strategies in a complex way, in accordance with levels of competition. Paperreveals the opportunities to develop and implement these strategies, taking into account market definition options.Research methodology – the paper examines the application of Nash equilibrium to the preparation of negotiationstrategies, looking at the function for the best result. The study would help to prepare business strategies for differentcompetition levels.Findings – the ways of preparation of negotiation strategies with different levels of competition, focusing on marketdefinition opportunities.Research limitations – there are not enough measures in international business negotiation theory helping to developnegotiation strategies in the face of distorted market competition and difficulties to define the market.Practical implications – findings of the article will give opportunities for policymakers to develop and implementstrategies for business negotiations.Originality – the article consists presentation of new tools for negotiators in preparing negotiating strategies.