At some point in our careers as mediators and lawyers we consider the notion that the haggling aspect of negotiation/mediation is a silly and pointless ritual. This is because we know that most likely we are going to end up somewhere between the plaintiff’s and defendant’s initial numbers. Assuming, of course, the initial numbers are within the zone of possible agreement. In other words, the initial numbers must be supported by some rational basis. That is they must at the very least be plausible.

This begs the question: Why can’t we just pick an objectively reasonable number and stick to it, and settle the case?

What does the research say? Haggling, the receiving and giving of concessions during the bargaining process makes people feel better than they do if they get a single fair price. This is true even if they end up paying more.

By Hal Wotitzky