Use a post-settlement settlement to improve a deal after agreement

Once you have a deal, offer to keep exploring whether a better one exists for both sides.

Why it works

The pressure of reaching agreement often locks negotiators into the first workable deal rather than the best possible one. A post-settlement settlement (PSS) reduces that pressure: both sides commit to the current deal as a floor, then explore alternatives with nothing to lose. Because the fallback is secured, both sides can take creative risks they wouldn’t take earlier.

How to do it

1. Once a deal is signed, propose: “We both have what we agreed. Would you be open to exploring whether there’s a version we’d both prefer?”
2. Bring a neutral third party or a structured format if trust is low.
3. Any alternative must beat the existing deal for both sides or it is rejected.
4. Set a time limit for the exploration so it doesn’t unsettle the deal.

Evidence

PSS was developed and studied by Howard Raiffa; his work showed negotiators consistently reach better joint outcomes when allowed to continue exploring after initial agreement under a guaranteed fallback. (observational)

The approach requires both sides to trust that the original deal truly is the floor; if one party fears re-opening will lose them ground, they will refuse.

Sources

• Raiffa (1985), Post-settlement settlements, Negotiation Journal

Common mistake

Opening PSS exploration before formalizing the original agreement, which removes the safety net and puts the deal back at risk.