What does the term "fixed pie" refer to in negotiations?

The term "fixed pie" in negotiations refers to a situation where the resources available are finite and cannot be increased. This concept suggests that the negotiating parties view the resources as a constant, with a predefined amount that needs to be allocated between them. When the pie is fixed, any gain by one party directly corresponds to a loss for the other, which can lead to a competitive or adversarial approach to negotiation.

Understanding the "fixed pie" mentality is crucial because it can significantly affect negotiation strategies and outcomes. It may prevent parties from exploring creative solutions that could lead to a win-win situation, as they might be focused solely on dividing the existing resources instead of thinking about how to expand those resources or integrate their interests.