Delays and Failure to Reach an Agreement Are Often Viewed

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The Answer is No. The view that failure to reach an agreement is irrational implicitly assumes that information is perfect, and that there is initially a zone of agreement. This is generally not true for actual negotiations - information is limited and sometimes faulty, and there may be a very narrow or even no zone of agreement. In addition, it may be difficult to communicate with other parties to a transaction. Delay may be a method of communicating that a party is actually unable to pay a higher price, or accept a lower price. In this case, credibility is an important issue in a negotiation. It may be a method of establishing reputation.

Delays and Failure to Reach an Agreement Are Often Viewed

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