A small business is negotiating a lease renewal with its landlord. The landlord wants to increase the monthly rent by 10% due to market conditions, while the business is trying to keep overheads low to maintain profitability. The negotiation focuses solely on the monthly rent amount, with each party trying to shift the fixed cost in their favour. The business proposes only a 5% increase, arguing that as a long-term tenant, it provides stability and reliability to the property. This example is indicative of a distributive negotiation, where the primary focus is on dividing a limited resource (the cost of rent) between the two parties.