What does a counter-offer represent in a negotiation?

A counter-offer is fundamentally a rejection of a previous offer. When one party presents a counter-offer, they are indicating that they do not accept the terms of the initial offer and are instead proposing different terms for consideration. This interaction is a key aspect of negotiation, as it allows each party to express their needs and adjust terms to reach an agreement that satisfies both sides.

Understanding the nature of a counter-offer is crucial in negotiations because it resets the negotiation dynamics. Once a counter-offer is made, the initial offer is considered void, and the other party must decide whether to accept, reject, or make another counter-offer in response.

The other concepts, while relevant to negotiation, do not accurately capture the essence of a counter-offer. A counter-offer is not simply a better offer; it's a distinct response that replaces the previous terms. It also does not signify acceptance of the original terms nor is it merely a strategy to enhance bargaining power, although it may have that effect in certain contexts. Instead, identifying it as a rejection is key to understanding how negotiations progress.