Can you provide an example of commitment in a negotiation Th

Can you provide an example of commitment in a negotiation? The commitment should have three properties - finality, specificity, and consequences.

Solution

Lewicki, Saunders and Minton (1997) describe commitment, as a key concept of negotiation, to taking a bargaining position with a pledge regarding a future intended course of action’.

According to Lewicki (1997), commitments involve:

• A degree of finality (how and when the agreement is to be fulfilled by)
• A degree of specificity (the performance measure) and
• A statement of consequences (what will happen if the promised outcome does not materialise as proposed)

Example:

Let X and Y as two product offered by an Automobile company.

Investor to Company : If you will raise your offer on X by 25%, I’ll kick in 10% on Y, otherwise we will settle this in court. My offer is open untill 6:00 PM.

Finality: how and when agreement to be fulfilled( Raise offer on X by 25%, Offer open till 6 PM).

Specificity: The statement is highly specific telling us what investor need.

Consequences: If the deal is not fulfilled the settlement will be done by the investor in court.