Final answer:
Negotiators might indicate their final offer through an ultimatum, as exemplified by the ultimatum game, marking the end of negotiations and forcing the other party to accept or decline the final terms. Compromises can occur when goals align, but differing fundamental goals or asserting a BATNA suggests a lower likelihood of further negotiations.
Step-by-step explanation:
One way negotiators may convey the message that an offer is the last one is to offer an ultimatum. This can be seen in various negotiations, including political bargaining and job offer negotiations. For instance, in the ultimatum game, Player A has a set sum of money to offer Player B, who can either accept or reject this final offer. The dynamics of this game mirror real-world negotiations where a final, non-negotiable offer is presented, signaling the end of concessions. Job offer negotiations might also include final terms after back-and-forth discussions on start dates, salary, etc, signaling that no further negotiation is available and the offer must be either taken or left entirely.
Compromise is another outcome in negotiations where conflicting parties find middle ground. However, if an ultimatum is used by one party, it indicates a final position from which they will not budge, potentially forcing the opposing party to choose between accepting the offer as is or walking away with nothing. This often occurs when there is no common ground to further negotiate upon, such as diametrically opposed goals or when one party is willing to enforce their stance by leveraging their BATNA (Best Alternative To a Negotiated Agreement), which reveals the actions they would take if negotiations fail.