Contingent Contract Negotiations
Contingent negotiations are a collaborative means of expanding the pie in an uncertain situation. These processes are used in various contract negotiations. A question in dealing with this process is, “What does the other person know that I don’t?”(Subramanian, 2006) Many times the answer is nothing, in many cases both parties are equally informed even when dealing with contract negotiations. A contingent process is a betting technique developed by negotiation theorists. The process involves two parties, say a seller and a buyer. They each make estimates of the other party’s bottom line and agree to set terms. If the seller is too high the contract will negotiate a middle point for the buyer and the same result applies for the seller underbidding. Contingent contracts can create value for both sides only if research, as well as the process, is thought out first.