Abstract
Research background: this study identified which factors influence other factors and how they have a greater impact on the value of a business entity’s HHI index. By knowing the key factors, they can be used to model possible mergers and their impact on the HHI index and possible changes in the market power balance. Purpose of the article: to present the concept of business negotiation system, enabling to model and effectively manage the process of development and implementation of negotiation strategies, assessing the negotiating power of negotiating parties and selecting multi-criteria assessment tools to balance them in the conditions of distorted construction sector market competition. Methods: multi-criteria assessment is used to assess the market power of business entities in business negotiations in order to select effective strategic solutions for construction sector’s business negotiations. Findings & Value added: a developed algorithm for the development of construction sector’s business negotiation strategy based on evaluations of bargaining power is presented.
Highlights
New challenges in international business negotiations raise the distorted competitive market situations - market concentration, cartels, monopolies and oligopolies
Many authors note that competition is usually measured on the basis of the following variables: market concentration, taxes, price marginal costs, and import penetration (Nickell, 1996; Blundell, 1999)
This study identified which factors influence other factors and how they have a greater impact on the value of a business entity’s Hirschmann index (HHI) index
Summary
New challenges in international business negotiations raise the distorted competitive market situations - market concentration, cartels, monopolies and oligopolies. Distorted market competition conditions pose new challenges in developing and implementing negotiation strategies of business entities in cooperation with foreign partners. Research shows that corporate negotiators, who are going to negotiations, usually do not have prepared business negotiation strategies, they have no negotiation tactics systems. This is important in the conditions of distorted market competition, which negatively affects the ability to balance the bargaining power of the negotiators. This confirms the need for research in this area
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