Negotiation in SMEs’ environment analysis with game theory tools

Abstract

The contribution deals with the negotiation process from a game theory perspective. On a negotiation model based on Nash bargaining problem, it demonstrates how to achieve greater utility and its division, or in a simplified form, division of a higher yield. The graphical form of the model helps to understand the way negotiations takes place and some aspects of it. The problem of subjective assessment of reality can be largely addressed by the negotiation process. Understanding the role of subjectivity in bargaining allows to improve your own bargaining skills and gain more in dividing the results achieved together. A proper set-up of the so-called point of disagreement is the key to the advantage of good preparation. The findings are related to the structure of negotiation ensuing from the negotiation program at Harvard Law School.