Source: Richard Walton and Robert McKersie, A Behavioral Theory of Labor Negotiations
An approach that expands the value available by trading on issues each side values differently, rather than just splitting a fixed amount. It contrasts with distributive, win-lose bargaining.
When to use it
Use it when negotiating scope, workload or role changes where several issues can be traded.
How to apply it
List all the issues on the table, not just pay.
Rank them by how much each matters to you.
Ask the other side which issues matter most to them.
Propose trades where you concede on what matters less to you and gain on what matters more.
Package the trades together rather than settling issues one at a time.
Tip: Negotiating issues one by one turns every point into a tug of war; keep them linked.