Collaborative approach in negotiation not only can fully satisfies the concerns of both, but also ensure that neither party will seek to be opportunistic in later time during the life of the contract. Is this statement true?

The statement is false. While a collaborative approach builds trust and aims for a mutually beneficial agreement, it cannot ensure that a party will not act opportunistically later. Post-contract opportunism can arise due to unforeseen circumstances, changes in market conditions, or information asymmetry that a party may choose to leverage for its own advantage, regardless of the initial negotiation spirit. Contract management and governance mechanisms are necessary to mitigate, but not entirely eliminate, this risk. The initial goodwill does not guarantee future behaviour throughout the contract's life.

A. Parties in an integrative negotiation have compatible, not necessarily identical, goals. This statement is an incorrect premise.
C. This is an argument for why the statement might be true, but it is overly optimistic and ignores the potential for future changes.
D. A collaborative approach seeks an optimal (win-win) solution, which is distinct from a compromise (a split-the-difference outcome).

1. Williamson, O. E. (1985). The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. Free Press. (The foundational text on transaction cost economics, which posits that parties may behave opportunistically).

2. CIPS (2018), Commercial Negotiation L4M5 Study Guide, Stamford: Profex Publishing, pp. 200-202. (Discusses the importance of contract management in mitigating risks like supplier opportunism, implying negotiation alone is insufficient).

3. Lax, D. A., & Sebenius, J. K. (1986). The Manager as Negotiator: Bargaining for Cooperation and Competitive Gain. Free Press. (Explains that even in cooperative negotiations, tensions exist that can lead to future opportunistic behaviour).