Some media point out that the UK Prime Minister, Theresa May, is ready to increase Britain’s offer to the EU over the Brexit divorce bill. The maximum amount that the UK is willing to pay is the difference between the economic gains from joining the European single market and the economic gains after leaving the European single market. However, the UK itself may not know the actual difference exactly, even if the UK government knows, it will not make it public, otherwise, Britain may have to pay the full price. Of course, Britain will not be the only one who will lose after Brexit; other EU countries may also lose after Britain leaves the EU, since Britain is one of the three major economies in the EU. Therefore, Britain technically only needs to pay the gap between what Britain would lose after it leaves the EU and what the rest of the EU would lose after Brexit.
Negotiation strategy is basically strategies that build on information set and expectation. Information set means the parties on the table do not know each other's information for certain; therefore, the parties make their decisions based on their own expectations about the outcomes of their opponents according to their estimated probabilities. However, in addition to the traditional game theory model, in the real world, bluffing is a common strategy that tends to mislead their opponents' estimation. Though people tend to know their opponents are likely to use bluffing strategy, it increases the difficulties of making precise estimations about their opponents. Moreover, in the real world, the money is not the only bet that can be put on the table. The valuation of other bets makes the negotiation much more difficult.
To conclude, there is not a perfect negotiation strategy, as information is unknown and bluffing is very common, the estimation is very likely to be distant from the correct answer. Therefore, there is no perfect negotiation strategy but there are definitely bad strategies.
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