Chapter 5 – Advanced Frameworks
141
Pareto Frontier
This framework can be best explained using the figure below,
which represents a negotiating arena between two companies,
who are trying to extract maximum value from a negotiable
agreement.
Points Y and Z represent outcomes which are superior for
both parties compared to outcome F, in terms of creating and
claiming value. If both companies resort to an integrative
bargaining approach as opposed to a distributive one
(integrative and distributive bargaining are defined in the
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