Guide · 6 min read

Negotiation Analysis Paper Guide

A negotiation paper is graded on preparation and insight. Show what you knew before the table, what you did and what the numbers say about the deal you made.

What the paper asks for

Negotiation courses usually pair a role-play exercise with a written analysis. The paper is not a retelling of the conversation. It should show how you prepared, how the interaction unfolded, how the outcome compares with what was possible and what you would change. Instructors often have the other side's confidential information and can see how much value was left unclaimed or uncreated.

PartQuestion it answersShare of paper
PreparationWhat were our interests, alternatives and limits?25 percent
ProcessWhat strategies and moves did each side use?25 percent
OutcomeWhat was agreed, and how good was it?20 percent
AnalysisWhat concepts explain the result?20 percent
LessonsWhat would we do differently?10 percent

Preparation: interests, BATNA and reservation value

Distinguish positions (what someone says they want) from interests (why they want it). Positions conflict; interests often do not. A supplier who insists on a higher price may care about cash flow, in which case faster payment could substitute for price.

Your BATNA, the best alternative to a negotiated agreement, is your walk-away option and the source of your power. The reservation value is the least favorable deal you would accept, and it should be at least as good as your BATNA after adjusting for non-price factors. The zone of possible agreement (ZOPA) exists when the buyer's reservation price exceeds the seller's.

ZOPA (hypothetical)

A seller will not accept less than $100,000 because the next-best buyer would pay that. The buyer will not pay more than $120,000 because an alternative supplier would cost that much.

ZOPA = $100,000 to $120,000, a width of $20,000. A deal at $110,000 splits it evenly. A deal at $105,000 gives the buyer $15,000 of the surplus and the seller $5,000, which tells you who negotiated better, assuming the reservation prices were real.

Improve your BATNA before negotiating, and never reveal that you have none. If you do not know the other side's reservation value, estimate it and say how.

Distributive and integrative bargaining

Distributive (claiming value)Integrative (creating value)
NatureFixed pie, one issue, such as priceSeveral issues with different priorities
GoalGet the largest shareExpand the total, then divide
TacticsAnchoring, concessions, deadlinesSharing information, asking why, trading issues (logrolling), packaging
RiskDamaged relationship, impasseExploitation if only one side shares

Most real negotiations contain both. The best negotiators create value first by finding trades, and then claim their share. The key to value creation is that the parties value issues differently.

A worked multi-issue example

Logrolling (hypothetical)

A buyer and a seller negotiate price, delivery speed and warranty length. Each side distributes 100 points of importance.

IssueBuyer's importanceSeller's importance
Price3040
Delivery speed5010
Warranty length (shorter is better for seller)2050

Package A: split every issue 50/50. Buyer score = 0.5 x 100 = 50; seller score = 50.

Package B: price split 50/50; the buyer gets all of the delivery speed; the seller gets the shorter warranty.

Buyer score = 0.5 x 30 + 1.0 x 50 + 0 x 20 = 15 + 50 = 65. Seller score = 0.5 x 40 + 0 x 10 + 1.0 x 50 = 20 + 0 + 50 = 70.

Both do better than under Package A (65 and 70 versus 50 and 50) because each gave up what mattered less to them in exchange for what mattered more. That 35-point gain in the joint total (135 versus 100) is the value created by trading across issues.

In your analysis, identify the trades you made or missed. Missed trades are among the most useful insights in a debrief.

Tactics and traps to analyze

  • Anchoring: the first number sets the range. Research shows the opening offer strongly influences the result, even when it is arbitrary.
  • Concession pattern: large early concessions teach the other side to expect more. Decreasing concessions signal that you are near your limit.
  • Information exchange: asking why uncovers interests. Honest sharing of priorities, not reservation prices, tends to create value.
  • Fixed-pie assumption: believing that the other side wants the same thing, which blocks trades.
  • Escalation and ego: positional fights that damage relationships and reduce joint outcomes.
  • Cultural and communication style: differences in directness, hierarchy and time can create misunderstandings.

Ethics matter too. Bluffing about your BATNA, as opposed to withholding information, can damage trust and cross legal lines in some contexts. If you discuss deception, apply the ethical lenses in our guide to business ethics cases.

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Reading the sequence of offers

The pattern of offers and concessions often says more about a negotiation than the final price. Record the sequence and interpret it.

Offer sequence (hypothetical, seller's ZOPA from earlier: $100,000 to $120,000)

RoundBuyer offerSeller offerSeller concessionBuyer concession
1$92,000$130,000
2$98,000$124,000$6,000$6,000
3$102,000$119,000$5,000$4,000
4$105,000$115,000$4,000$3,000
5$108,000$113,000$2,000$3,000

Both sides make shrinking concessions, which signals approaching limits. The gap closes from $38,000 to $5,000, and a deal near $110,500 is a natural meeting point. The seller's early large concessions and the buyer's lower opening offer meant the final price sat just above the middle of the ZOPA, a good result for the buyer given the opening anchors.

In your paper, link the pattern to concepts: anchoring set the range, decreasing concessions signaled limits, and a first offer that was far outside the ZOPA may have slowed progress.

A preparation sheet you can reuse

ItemQuestions to answer in writing
Our interestsWhat do we need, want and fear? Which matter most?
Their interestsWhat do they probably need? What evidence do we have?
Our BATNA and reservation valueWhat is the best alternative and how good is it, in the same units as the deal?
Their BATNAWhat is their alternative, and how might it change?
Issues and tradesWhich issues can we trade, and what is each worth to each side?
Opening and targetsOpening offer, target and walk-away, with reasons
Process and ethicsWho speaks, what information we will share, and what we will not say

Include a version of this sheet in an appendix. It shows preparation, which instructors value highly, and it gives you something to compare with what actually happened.

Common weaknesses in negotiation papers

  • Retelling the conversation Analyze moves and outcomes; do not narrate every turn.
  • Ignoring the other side's information If you saw it in the debrief, use it to evaluate what was missed.
  • Judging only by price Compare the whole package and the relationship.
  • Blaming the counterpart Focus on what you could have done differently.
  • Concepts without evidence Tie each concept to a specific moment.

Debrief and lessons

  • Compare the outcome with the ZOPA Where in the range did the deal fall, and why?
  • Count the value created Did you trade across issues, or only split price?
  • Name one missed opportunity A question you did not ask or an interest you did not explore.
  • Link to concepts BATNA, anchoring, logrolling and the fixed-pie bias, each tied to a moment in the negotiation.
  • Commit to change Specific preparation and behavior for the next negotiation.

Use first person for the reflective part and the structure in our reflection paper guide. If you want help with a negotiation paper, you can order MBA assignment help.

Quick answers

What is a BATNA?

The best alternative to a negotiated agreement: what you will do if the talks fail. A strong BATNA gives you power and sets your walk-away point.

What is the difference between positions and interests?

A position is what someone demands. An interest is the need behind it. Exploring interests often reveals trades that positions hide.

Should I reveal my reservation price?

Generally no. Share your priorities and reasons, which help create value, but revealing your limit invites the other side to settle at it.

What if the role-play ended in impasse?

Analyze it. Compare reservation values, identify why a deal was not found and explain what each side could have done differently.

Is it better to make the first offer?

Research suggests first offers anchor the discussion, so making one is often an advantage when you have good information about the range. If you know little, listening first can help.

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