Browsing by Subject "Negotiation costs"

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Entscheidungsorientierte Bewertung von Alternativen in Verhandlungsprozessen
(2022) Heinle, Timo; Troßmann, Ernst
Negotiations take place within and between all possible types of businesses. They not only shape private and public households, but they are also an elementary component in everyday business life. The main focus is on negotiations in make-to-order-production that take place between two companies. In the case of make-to-order-production the project character is important, which is reflected on the one hand in the high level of customer-related service specifications, and on the other hand in the low standardization of the drafting of contracts. To be able to draft the contracts, more or less extensive negotiations between the contracting parties, in which an attempt is made to reach an agreement on the relevant subjects of the negotiation, are usual. At different points in the negotiation process the negotiating parties must make a large number of decisions. If in such cases the negotiators only focus on the outcome of the negotiations, there is a risk of protracted negotiations with high costs. Such an approach is not compatible with a conventional operational target system. When considering the negotiation costs, it may be preferable to accept an allegedly worse offer in order to avoid further rounds of negotiations and the associated costs. Negotiation decisions, depending on the time the decision is made, can be characterized by a multitude of different alternatives. In any event, before a negotiation begins, it must be decided whether entering into a negotiation rather than the renunciation of a common agreement is preferable. If the negotiating parties are already negotiating, a decision on whether to accept or reject an existing offer is imperative. Breaking off a negotiation and the subsequent failure to reach an agreement is an alternative that regularly exists up until shortly before a contract is agreed on. To be able to make a choice, a decision-oriented valuation of alternatives in negotiation processes is necessary. The methodological apparatus designed in this dissertation enables a decision-oriented valuation of negotiation alternatives by the supplier in make-to-order-production. This allows negotiators to check at any time during a negotiation whether the intended negotiation alternative is the most appropriate or whether another negotiation alternative is relatively advantageous due to updated environmental conditions and updated levels of information.