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Negotiating for the Minimum

Negotiation theory asserts that in bargaining situations a focal negotiator should set a reservation point that is a minimum price needed, or a maximum price they will pay to accept an agreement. Theory prescribes negotiators ought to set a target point or aspirant. This study examines whether focal negotiators’ final agreements are closer to their reservation point than their target point. The study also examines factors that may explain and correlate with negotiators’ results.