(adapted from Rubin and Brown, The Social Psychology of Bargaining and Negotiation, New York: Academic Press, 1975; Lewicki, Litterer, Minton, and Saunders, Negotiation, 2nd ed., Burr Ridge, IL: Irwin, 1994; Fisher, Ury, and Patton, Getting to Yes, 1991).

1. TWO OR MORE PARTIES: At least two parties are involved.

2. INCOMPATIBLE INTERESTS: The parties have a conflict, dispute, or problem requiring resolution.  Social psychologists Rubin and Brown in The Social Psychology of Bargaining and Negotiation (1975) note that "the parties have a conflict of interest with respect to one or more different issues" (p. 6).  Conflict refers to incompatible goals (ends) and/or incompatible means of attaining a compatible goal.  Folger, Poole, and Stutman in Working Through Conflict (1997) define conflict as "the interaction of interdependent people who perceive incompatible goals and interference from each other in achieving those goals" (p. 4).

3. VOLUNTARY RELATIONSHIP: Regardless of previous experience or encounter with one another, the parties are joined together, at least temporarily, in a special kind of voluntary relationship.

4. INTERDEPENDENCE: The parties are interdependent, that is, they depend on each other or need one another to resolve their conflict/dispute or reach their goal.

5. EXCHANGE OF RESOURCES or RECONCILIATION OF ISSUES: Activity in the relationship concerns the division or exchange of one or more specific resources (tangible issues), and/or the resolution of one or more intangible issues among the parties or among those whom they represent (Rubin and Brown, p. 10).

6. FLUID PREFERENCES: Parties have identifiable outcome preferences.  These preferences can be influenced and changed through communication interaction.

7. SEQUENTIAL ACTIVITY: The negotiation interaction usually involves the presentation of positions, demands, proposals, or offers by one party, evaluation of these by the other party, followed by concessions and counter proposals or offers.  The activity is sequential rather than simultaneous.  Negotiators take turns as they offer, counteroffer, react, and argue.
 
8. JOINT DECISION-MAKING: Negotiation is a joint decision-making process.  Both parties participate to some degree (not necessarily an equal degree) in the decisions made.  Negotiation is not necessary if unilateral (one person) decision-making is preferred.

9.  DECISION AMONG ALTERNATIVES: Every negotiation involves a choice among different outcomes or solutions and each party has a BATNA; Best Alternative to a Negotiated Agreement