What effect does making concessions have on negotiations?
A)Concessions enable the parties to move towards the area of potential agreement.
B)Concessions symbolize each party's motivation to bargain in good faith.
C)Concessions communicate to the other party the relative importance of negotiating items.
D)Concessions have all of these effects on negotiations.
E)Concessions have none of these effects on negotiations.

Question

Quizplus · Accepted Answer

Making concessions has multiple effects on negotiations. Firstly, concessions help the parties to move towards the area of potential agreement, as each party is willing to compromise to reach a common ground. Secondly, concessions signal a good faith bargaining attitude, indicating that each party is committed to finding a mutually beneficial solution. Finally, concessions communicate the relative importance of the negotiating items, and allow each party to gauge the other's priorities. Therefore, concessions have all the stated effects on negotiations.

What Effect Does Making Concessions Have on Negotiations