PRAM Model

AAA

DEFINITION of 'PRAM Model'

A four-step model for negotiation that results in a win-win situation for both parties. PRAM is an acronym for Plans, Relationships, Agreement and Maintenance. The four sequential steps in the PRAM model are - adequate planning, building relationships, reaching agreements and maintaining these relationships.

INVESTOPEDIA EXPLAINS 'PRAM Model'

The PRAM model does not treat negotiations as a zero-sum game, in which one party benefits at the expense of the other, but rather as an opportunity for both parties to benefit and satisfy their objectives. Ongoing relationship management is crucial in the PRAM model, since a mutually beneficial agreement in the first instance may ensure that both parties return to the negotiating table for more agreements in future.

RELATED TERMS
  1. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s ...
  2. Deal Breaker

    An issue that, if left unresolved, prompts one party to discontinue ...
  3. Best Alternative To A Negotiated ...

    The course of action that will be taken by a party engaged in ...
  4. Pareto Efficiency

    An economic state where resources are allocated in the most efficient ...
  5. Prisoner's Dilemma

    A paradox in decision analysis in which two individuals acting ...
  6. Game Theory

    A model of optimality taking into consideration not only benefits ...
Related Articles
  1. Budgeting

    Negotiating A Debt Settlement

    If you're being harassed by a debt-collection agency, you can take charge. Find out how.
  2. Professionals

    6 Employment Perks And How To Get Them

    Find out how to get more than money from your employer.
  3. Personal Finance

    Master The Art Of Negotiation

    Learn the strategies that will help you to come out on top in any negotiation.
  4. Options & Futures

    Cut Credit Card Bills By Negotiating A Lower APR

    Reducing the rate charged on your credit card balance is the first step to getting out of debt.
  5. Entrepreneurship

    The Best (And Worst) Countries To Be An Entrepeneur

    Where you start a business can influence its success. This new World Bank study will help you find the most – and least – favorable economic climates.
  6. Investing News

    Looking to Open a Franchise? These Topped The List In 2014

    These franchise businesses stood out in 2014.
  7. Not every new company or product makes it, but many successful startups share the following characteristics.
    Entrepreneurship

    6 Characteristics Of Successful Apps

    Not every new company or product makes it, but many successful startups share the following characteristics.
  8. When it comes to managing finances and tracking the markets on the go, there are a number of excellent apps that can be downloaded and installed onto your mobile device.
    Entrepreneurship

    Top Stock Market Apps For News Or Trading Or Both!

    When it comes to managing finances and tracking the markets on the go, there are a number of excellent apps that can be downloaded and installed onto your mobile device.
  9. A brief overview of the top apps that help forex traders with on time information, charts and more.
    Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  10. As technology has evolved, the landscape of the music industry has changed from radio broadcasts to mp3 and now streaming services.
    Entrepreneurship

    Will Pandora And Spotify Disrupt Music Royalties?

    As technology has evolved, the landscape of the music industry has changed from radio broadcasts to mp3 and now streaming services.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center