What is meant by a concession in negotiation?

In negotiation, a concession refers to a compromise made to facilitate an agreement between parties. It represents a concession from one party's position to address the other party's needs or concerns, thereby helping to foster collaboration and move the negotiation forward. Making a concession can demonstrate flexibility and a willingness to work towards a mutually beneficial outcome. This exchange is often essential in building rapport and trust among negotiating parties, allowing for a more productive dialogue.

A concession can take various forms, such as offering a lower price, extending deadlines, or making adjustments to the terms of an agreement. By doing so, one party acknowledges the other party's priorities and demonstrates an intention to find common ground, which is a fundamental aspect of successful negotiation strategies.

Understanding this concept is crucial because it highlights the importance of give-and-take in negotiations, which can lead to successful outcomes for all involved.