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David Honig — Trumps’s style of “distributive bargaining”

Summary:
Distributive bargaining is win-lose aka zero-sum. Integrative bargaining is win-win aka compromise. Distributive bargaining is based on the assumption of conflict between the interest of the parties in dividing a fixed pie, while integrative bargaining is about cooperation on common interests and compromise on other interests to grow the pie. Trump's bargaining style based on his business background is distributive and based on competition, where there is a winner and a loser at the striking of the bargain.  The Chinese style of bargaining is integrative and aims at satisfying the interest of all by cooperation in a more open-ended arrangement.Not a great analysis of Trump's m.o. but worth a read if there's time. It's short, and it's a hot topic now.Some see Trump's style as

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Distributive bargaining is win-lose aka zero-sum. Integrative bargaining is win-win aka compromise.

Distributive bargaining is based on the assumption of conflict between the interest of the parties in dividing a fixed pie, while integrative bargaining is about cooperation on common interests and compromise on other interests to grow the pie.

Trump's bargaining style based on his business background is distributive and based on competition, where there is a winner and a loser at the striking of the bargain. 

The Chinese style of bargaining is integrative and aims at satisfying the interest of all by cooperation in a more open-ended arrangement.

Not a great analysis of Trump's m.o. but worth a read if there's time. It's short, and it's a hot topic now.

Some see Trump's style as simplistic for the international situation and others as being 5-D chess that only Trump can understand.

My view is that Trump is a lot better negotiator in this regard than the opposing side gives him credit for, but I also think that he tends to look at international deals in terms of particulars, so he can claim a win in each case. But the international chess board is more complicated than that. It's like playing chess with the intention of never losing even a pawn in the game. But Trump also knows when to hold 'em and when to fold 'em. The game consists of many hands.

Geopolitika
Trumps's style of "distributive bargaining"

David Honig
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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