Abstract

Certain challenges arise in business negotiations when competition in the market is more or less distorted. This can take place in various markets conditions. In such situations great possibilities open up to the development of international business relations as overclocking new market participants can provide additional alternatives for companies and organizations or other business units, by reducing the negative impact of competition distortions for the balance of negotiating power of participants in negotiations. In the development and implementation of effective international business negotiation strategy, it is important to identify the balance of negotiating power of major participants in negotiations in order to make more efficient use of the potential of business negotiations – the negotiating powers. The aim of this article is to analyze in complex the unfolding theory and practice of development and implementation of international business negotiations and negotiating strategies under distorting market competition conditions, to reveal opportunities on development and implementing improvements of these strategies in cases of monopsony, oligopsony and monopoly. Object of the research is the search of balance on negotiating powers in international business negotiations under conditions of distorted competition in the market. The scientific problem - negotiation theory lacks measures for assessment and balancing the negotiating powers of negotiation’s participants under distorted market competition.

Highlights

  • New challenges arise for business negotiations because of conditions, which are distorting the market competition

  • This affects on the balance of negotiating powers of participants in negotiations

  • In the development and implementation of effective international business negotiation strategy the assessment of situation on negotiating powers of negotiating parties and essential components of their deviation from equilibrium is important in order to make effective use of the potential of business negotiations – the negotiating powers

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Summary

Introduction

New challenges arise for business negotiations because of conditions, which are distorting the market competition This affects on the balance of negotiating powers of participants in negotiations. International business negotiations: search of the balance and the equilibrium of negotiating powers, under distorting market conditions of competition (monopsony, oligopsony and monopoly cases). The higher number of sellers, suppliers, allows the buyer to have a greater variety of solutions, more alternatives In this case, the buyer can take advantage of competitive tension situation in their own favor. The aim of the research – is to analyze in complex the unfolding theory and practice of development and implementation of international business negotiations and negotiating strategies under distorting market competition conditions, to reveal opportunities on development and implementing improvements of these strategies in cases of monopsony, oligopsony and monopoly. The scientific problem – negotiation theory lacks measures for assessment and balancing the negotiating powers of participants in negotiations under distorted market competition

The relevance of the study and problem investigation level
Monopsony and power of buyer
Monopsonistic power
Occurring monopsony cases
Monopoly and power of the supplier
Market structure
Market concentration
Competition level
Symptoms on the cartel behavior
Other sources of market distortion
Global sources of distortion
Additional criteria for negotiations
Findings
Conclusions
Full Text
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