Question

How would you describe "bargaining surplus" and "negotiator's surplus"? What makes them similar and what makes them different?

Answer 1

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Bargaining surplus:

The difference between the values of buyer and seller. The goal of each negotiating party is to ideally create a situation where the surplus grows, thereby enhancing the size of their share. It is the amount of overlap between reservation points of the sides. It is a measure of how broad a favorable bargaining zone can area can be.The overall gain resulting from the two-party interaction is called the bargaining surplus.

Negotiator's surplus:

The quantity or magnitude of interest or value that a negotiator claims beyond his point of view is known as the "negotiator surplus". Both sides to a negotiation will have a surplus.However, a negotiator excess comparison will show which party has been more effective in the negotiation.It is the positive distinction between the settlement result and the reservation point of the negotiator.

Bargaining surplus goal is that each negotiating party is to ideally create a situation where the surplus grows .Negotiator’s surplus shows which party has been more effective in the negotiation.Bargaining surplus is  measure of the size of the bargaining zone.Negotiation surplus is more than what negotiators can achieve in the lack of negotiated contract.

The common thing between Bargaining surplus and Negotiator's surplus is that in both the cases the parties want to grow the surplus amount.

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