Strategic View of Bargaining. Explain the strategic view of bargaining

Strategic View of Bargaining
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Strategic View of Bargaining
Strategic bargaining usually involves weighing the preferences of two parties that are involved in a transaction of any kind. Both parties typically have their preferences or strategies, which, in return, have different outcomes. The outcomes also come with a variety of utilities. It is, therefore, the utilities of the parties that are always weighed against each other to determine the ones that suit both parties in equal levels (Johnston,1990). For instance, party A maybe preferring to do items a, b and c while party b might prefer doing things a, c and d. All the preferred details might also lead to various outcomes, which may incur some costs.
Therefore, for both parties to reach a level playground, the outcomes need to be weighed against each other and determine those that are relatively acceptable to both parties. The acceptable items might not be necessarily what various parties prefer, but they can be items that they can easily cope with without experiencing several effects (Johnston,1990). Reaching a level playground might also mean that each party forgoes some things that they prefer to accommodate the other party. The foregone items end up becoming utilities. Therefore, for strategic bargaining to be reached, both parties must be ready to forgo some of the preferred things or reduce them to a level that can allow accommodation of the other party.
To explain this idea, numerically, an example of ...