Concessions, or compromises, occur when two or more parties reach an agreement by making mutual concessions. This process often involves each side giving up something they want to achieve a resolution that is acceptable to all involved. Compromise is essential in negotiations, as it helps to maintain relationships and foster cooperation. In various contexts, such as politics, business, or personal relationships, concessions can lead to more effective communication and problem-solving. By understanding each other's needs and priorities, parties can find common ground, ultimately leading to a more harmonious outcome.