What is a "concession" in a negotiation context?

In the context of negotiation, a concession refers to a point or compromise that one party agrees to grant in response to the demands or requests of the other party. It signifies a willingness to make a compromise to facilitate the negotiation process and progress towards reaching an agreement. Concessions are often strategic and can help to build goodwill, demonstrate flexibility, or create a more favorable environment for further negotiation.

Recognizing the importance of concessions in negotiations is crucial; they can lead to a middle ground that satisfies both parties' interests. When one party makes a concession, it can encourage the other party to reciprocate in some way, thus promoting collaboration and negotiation rather than conflict. In this way, concessions serve as critical tools in finding mutually acceptable solutions during negotiations.