They both want a product that is affordable and of high quality and for each person to be treated fairly. They also want a solution that will preserve their positive relationship. There are a number of standards or criteria that could be applied to the problem. For example, they could pay the working neighbor the current minimum wage, the prevailing rate for a journeyman carpenter, or a pro rated amount based on what he or she normally earns. There is a wide range of possible standards, and the negotiators will select a solution based on which standards are most likely to satisfy their interests.
Standards can come in a variety of forms.
There is no guarantee that a standard will be acceptable, just because it is perceived to be neutral. In the example above, any one of the criteria might be more acceptable to one neighbor than the other. If a standard is to be used, it must be negotiated just like any other option. There are a number of different approaches to standards that typically might apply to financial negotiations, and it is often helpful to consider a variety to find one that works. Another form of comparability study is an objective analysis of the high and low range in which a certain commodity is selling.