What type of negotiation occurs when one party's gain is equal to the other's loss?

The correct answer is distribution negotiation, which is characterized by a competitive approach where the resources or benefits in question are fixed or limited. In this type of negotiation, one party's gain comes at the direct expense of the other, making it a zero-sum situation. This means that the total amount of value available to both parties does not change; whatever one side earns, the other side must lose.

This scenario often occurs in situations where two parties are negotiating over the same set of resources, such as price points, budget allocations, or contract terms. Each party aims to maximize its own benefit, leading to a situation where negotiation strategies and tactics are predominantly adversarial.

Understanding distribution negotiation is important as it highlights the inherent tension between competing interests and clarifies the dynamics at play when both parties aim to secure the most favorable outcome for themselves without consideration for the opponent's position.

In contrast, collaborative negotiation focuses on mutual gain and finding solutions that benefit both parties, while internal negotiation typically involves discussions within an organization rather than between adversarial parties. Transformational negotiation, although less commonly referenced, suggests a change in the relationship dynamics to create new opportunities, which is contrary to the fixed pie concept of distribution negotiation.