People with no formal training bargain this way. They fight for what they can get from a given pie, assuming that the pie can't be grown any bigger.  They are not aware of the  Pareto  Frontier  in business negotiations.  Consequently they lose out  on what they can actually get.

The classic example to illustrate the concept is that of a boy and his elder sister fighting over an orange. In distributive bargaining, they both settle for half of the orange each, and the boy gets to eat only half the orange. If the boy wants to eat the whole orange, he has to resort to Integrative Bargaining.