Generally speaking, business is condensed into these 6 words and I have yet to see otherwise:
It all
comes down
to money.
That being said, I can't help but wonder where "losing face" fits into the equation here. Negotiating is like buying a car; the seller knows he isn't going to sell for what he's asking and the buyer knows he isn't going to purchase for what he's offering. If they can come to an agreement where neither one feels like he got screwed, they have a pretty good chance at closing the deal. And yes, I know no one is making a purchase, but the principle is the same. There's the money part, and there's the losing face part. In the end, each side wants to be able to go to the press and trumpet forth, "WE WON," which I'm sure they will do, anyway.