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8 - Commitment Tactics

Published online by Cambridge University Press:  24 November 2009

Abhinay Muthoo
Affiliation:
University of Essex
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Summary

Introduction

In many bargaining situations the players often take actions prior to and/or during the negotiation process that partially commit them to some strategically chosen bargaining positions. Such commitments are partial in that they are revocable, but revoking a partial commitment can be costly. The following two extracts from Schelling (1960) illustrate this ‘commitment’ tactic.

it has not been uncommon for union officials to stir up excitement and determination on the part of the membership during or prior to a wage negotiation. If the union is going to insist on $2 and expects the management to counter with $1.60, an effort is made to persuade the membership not only that the management could pay $2 but even perhaps that the negotiators themselves are incompetent if they fail to obtain close to $2. The purpose … is to make clear to the management that the negotiators could not accept less than $2 even if they wished to because they no longer control the members or because they would lose their own positions if they tried. In other words, the negotiators reduce the scope of their own authority and confront the management with the threat of a strike that the union itself cannot avert, even though it was the union's own action that eliminated its power to prevent strike.

Schelling (1960, p. 27)

When national representatives go to international negotiations knowing that there is a wide range of potential agreement within which the outcome will depend on bargaining, they seem often to create a bargaining position by public statements, statements calculated to arouse a public opinion that permits no concessions to be made.

Schelling (1960, p. 28)
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Publisher: Cambridge University Press
Print publication year: 1999

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  • Commitment Tactics
  • Abhinay Muthoo, University of Essex
  • Book: Bargaining Theory with Applications
  • Online publication: 24 November 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511607950.009
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  • Commitment Tactics
  • Abhinay Muthoo, University of Essex
  • Book: Bargaining Theory with Applications
  • Online publication: 24 November 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511607950.009
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Commitment Tactics
  • Abhinay Muthoo, University of Essex
  • Book: Bargaining Theory with Applications
  • Online publication: 24 November 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511607950.009
Available formats
×