What does concession mean in negotiation?

Give to Get

The root word of ‘concession’ is concede, which means to yield or surrender. But in a negotiation, where some give and take is expected, a concession is something that should be traded. There’s even a specific term for trading concessions: logrolling.

What is a concession strategy?

Your concession strategy is a plan of the goals / positions and sometimes the underlying interests that you will be trading with the other party. … Concession strategies vary in detail. ‘Concession Strategy’ is more accurately called the ‘Trading Plan’.

When should you make concessions during a negotiation?

The most important thing to remember is that concessions are the only method of arriving at a mutually acceptable outcome. Unless the other party is willing to adjust her reservation point, one party must continue to make concessions until the negotiation point moves beyond the other party’s reservation point.

What effect does making concessions have on negotiations?

Highlights. Decreasing concessions signal that the sender is reaching their reservation price. Recipients therefore make less ambitious counteroffers and reach worse agreements. These effects are stronger when concessions decrease at a moderate rate.

What is an example of a concession?

The definition of concession is something granted in response to demands, or a special allowance, or is the right to use land or property granted by the owner. When you are negotiating and you give in to something that the other side wants, this is an example of a concession.

How do you concession in negotiation?

Four Strategies for Making Concessions in Negotiation
  1. Label Your Concessions. In negotiation, don’t assume that your actions will speak for themselves. …
  2. Demand And Define Reciprocity. …
  3. Make Contingent Concessions. …
  4. Make Concessions In Installments.

What does it mean to make concessions?

concession
If you make a concession to someone, you agree to let them do or have something, especially in order to end an argument or conflict. We made too many concessions and we got too little in return.

Why are concessions important during a purchase negotiation?

Each side to a negotiation usually compromises by making some concessions to reach agreement. Careful concessions help guide you through this process towards a mutually satisfying agreement.

Why is it important to give concessions at work?

Concessions are important during negotiation because it will minimize the efforts of parties entering into negotiation. It helps the parties to make negotiation efficient. It results in win-win negotiation for the parties involved.

What does concession mean in business?

What is a concession? It is a kind of partnership between the public sector and a (usually) private company that has shown its added value in a specific area, for example developing infrastructure.

What are the types of concession?

There are several kinds of concessions, represented by the three concession forms: Pre-requisite Waivers, General Concessions (different kinds, which are specified in the checklist on the form); and Timetable Clashes.

Is a concession a child?

Re: What does the term ‘Concession’ mean? A concession is a discount for children, seniors, students etc. 2.

What is a financial concession?

Financing concessions are: financial contributions from interested parties that provide a benefit to the borrower in the financing transaction; payments or credits related to acquiring the property; and. payments or credits for financing terms, including prepaids.

What is a concession price?

A concessionary price is a special price which is lower than the normal one and which is often given to old people, people who are unemployed, and students.

What is the meaning of Concessor?

Concessor meaning

A person who concedes. noun.

Is concession a discount?

A concession is a special price which is lower than the usual price and which is often given to old people, people who are unemployed, and students.

What is difference between discount and concession?

As nouns the difference between concession and discount

is that concession is the act of conceding, especially that of defeat while discount is discount (reduction in price).

What is the difference between a concession and a credit?

As nouns the difference between concession and credit

is that concession is the act of conceding, especially that of defeat while credit is credit.

How do you use concession?

Examples of concession in a Sentence

The candidate made an emotional concession speech when it was clear that he had lost. The strikers have won some important concessions from the company.

What are new issue concessions?

The so-called new-issue concession is the difference between the extra yield, or spread, investors demand to buy new bonds over U.S. Treasurys and the spread on the company’s existing bonds of a similar maturity just before the new bond sale was announced. Larger concessions are a sign of weaker demand from investors.