Compromise

Compromise is one means of reaching agreement and involves mutual concessions. A common approach to negotiation is to ‘split the difference’ between the parties’ positions. Suppose the supplier has quoted $100 and the buyer has offered $90, any settlement between $90 and $100 involves compromise. The method is often seen as a last resort, as neither party gets what they wanted. However it can be seen as ‘fair’ as both parties concede; many buyers would believe that $95 is a fair solution in the example given. See also Negotiation.