A Beautiful Mind Meets Harsh Reality: Practical Tips for Negotiators When Bargaining Strays from Ideal Conditions

Bilateral bargaining theory developed by mathematician and Nobel Laureate John Nash predicts that when both parties have full information, a deal is quickly reached without a strike. Such a situation represents ideal conditions, which the real world does not match. However, Nash Bargaining presents a useful baseline for bargaining teams. We discuss deviations from ideal conditions that bargaining teams are likely to face and tactics for overcoming them with the goal of reaching an agreement while avoiding a strike. This paper’s focus draws from our experience negotiating a contract for non-tenure track faculty across the three University of Michigan campuses, but is applicable to other bargaining situations as well.