They may be disliked but “exploding” offers remain common corporate practice as an offer strategically delayed is, almost always, a negotiator's best bet.
The length of a negotiation usually depends on how the parties balance their eagerness to close the deal against their desire to play the field. So-called “exploding offers” are designed to curtail courtship and secure a hasty marriage. Nevertheless experts agree they aren’t always the best way to make friends. Few people enjoy having to make an important decision - such as whether to accept a job or business partnership - under duress. Further, researchers caution that exploding offers produce sub-optimal alliances, reduce firms’ financial performance, and often provoke retaliation. Despite these risks, they remain a favoured tactic with corporate negotiators of all stripes.
