The focus of analysis is on rational parties who act as expected utility maximizers, who correctly perceive the structure of the game they are playing, and who deal with uncertainty according to the laws of probability. Such an approach provides a norm against which actual behavior can be compared and a guide to potential difficulties that arise in bargaining. A precise definition of strategy is provided, and the concept of an equilibrium pairing of strategies is presented. The effects of complete versus incomplete information on negotiation is considered, as is the role of time in interactions between parties. The mechanics of offers and counteroffers and the role of third-party intervenors in conflict situations also are examined. Illustrations are provided. Figures, 2 notes, and 25 references.