The Influence of Past Negotiations on Negotiation Counterpart Preferences

Choosing the right counterpart can have a significant impact on negotiation success. Unfortunately, little research has studied such negotiation counterpart decisions. Three studies examined the influence of past negotiations on preferences to negotiate again with a counterpart. Study 1 found that the more favorable a past negotiated agreement the stronger the preference to negotiate with the counterpart in the future. Moreover, this relation was mediated through liking of the counterpart. Study 2 manipulated the difficulty of achieving a favorable agreement in the negotiation and found a significant effect of this situational factor such that subsequent counterpart preferences were less favorable when the negotiation was difficult. Similar to Study 1, this effect was mediated through liking of the counterpart. Study 3 examined the possibility of debiasing negotiator preferences from the biasing influence of situational characteristics by providing relevant information about the negotiation situation. Replicating the results of Study 2, negotiation difficulty affected counterpart preferences before additional information was given or when irrelevant information was given. However, once negotiators received relevant information on the negotiation situation, the effect of negotiation difficulty disappeared. Theoretical and practical implications are discussed.     

Susceptibility to the ‘Dark Side’ of Goal-Setting: Does Moral Justification Influence the Effect of Goals on Unethical Behavior?

Setting goals in the workplace can motivate improved performance but it might also compromise ethical behavior. In this paper, we propose that individual differences in the dispositional tendency to morally justify behavior moderate the effects of specific performance goals on unethical behavior. We conducted an experimental study in which working participants, who were randomly assigned to a specific goal condition or to a condition with a vague goal that lacked a specific target (i.e., ‘do your best’), completed two tasks in which they had the opportunity to act unethically. In an ethical dilemma task, participants in the specific goal condition were more likely to advocate using unethical methods. However, in an anagram task, only those with high moral justification overstated their performance to a greater degree in the specific goal condition. As such, individuals may not be equally susceptible to the ‘dark side’ of goal-setting.     

Mediation with Incomplete Information: Approaches to Suggest Potential Agreements

In bilateral Negotiation Analysis, the literature often considers the case of complete information. In this context, since the negotiators know the value functions of both parties, it is not difficult to calculate the Pareto efficient solutions for the negotiation. Thus rational negotiators can reach agreement on this frontier. However, these approaches are not applied in practice when complete information is not available. The research question of our work is “It is possible to help negotiators achieving an efficient solution in the absence of complete information regarding the different parameters of the model?”. We propose to derive incomplete information about the preferences of negotiators from the statements they make and the offers they exchange during the negotiation process. We present and discuss three approaches that use this information in order to help a mediator proposing a better solution than the compromise the negotiators have reached or are close to reach.     

Negotiators' Communication, Perception of Their Counterparts, and Performance in Dyadic E-negotiations

The aim of this study was to improve our understanding of negotiation strategies, behaviors, and outcomes, and the relationships between these factors based on data collected from questionnaires, actual behavior during the negotiation process implemented using e-negotiation system, and the negotiation outcomes. This study clustered the negotiators based on either the negotiators' own strategies or their thoughts about those of their partners. This resulted in a division into cooperative and noncooperative clusters. We found that the negotiators whose own strategies are less cooperative tend to submit more offers but fewer messages. However, these people consIDer that they have less control over the negotiation process compared with those who adopt a more cooperative strategy, who make fewer offers but send more messages. Those in the cooperative cluster consistently feel friendlier about the negotiation and more satisfied with the outcome and their performance. Further, there is a correlation not only between self-strategies and the thoughts about partners' strategies, but also between strategies and final agreements. Finally, the proportion of negotiations reaching agreement is larger for the cooperative cluster than for the noncooperative cluster.     

A method for examining learning in negotiation

The impact of feedback on interpersonal learning in negotiation was examined. An interactive computer program was developed to isolate the effect of individual judgment on performance. Subjects negotiated three times with a computerized opponent whom they were led to believe was another subject. Some subjects received a complete diagnosis of their opponents' interests following each negotiation (full feedback); others only learned about their opponents' payoffs (outcome feedback); some did not receive any information about the opponent (control). The prediction was that subjects who received a complete diagnosis would make more accurate judgments about their opponents' interests and reach more integrative agreements in subsequent negotiation situations. The results provided weak support for the model. Two indices of performance were studied: negotiators' ability to recognize compatible issues and logrolling, or the ability to make mutually beneficial tradeoffs among issues. The pattern of findings was dramatically different for the two performance measures: Whereas logrolling improved as negotiators gained experience, recognition of compatible issues worsened over trials. The degradation of performance for compatible issues was curbed for negotiators who were provided with full feedback. The feedback did not affect logrolling performance.The research reported in this article was supported by a grant from the National Science Foundation #SES89211926.     

On automated e‐business negotiations: Goal,policy, strategy,and plans of decision and action

In recent years, there has been increasing interest in automated e‐business negotiations. The automation of negotiation requires a decision model to capture the negotiation knowledge of policymakers and negotiation experts so that the decision‐making process can be carried out automatically. Current research on automated e‐business negotiations has focused on defining low‐level tactics (or negotiation rules) so that automated negotiation systems can carry out automated negotiation processes. These low‐level tactics are usually defined from a technical perspective, not from a business perspective. There is a gap between high‐level business negotiation goals and low‐level tactics. In this article, we distinguish the concepts of negotiation context, negotiation goals, negotiation strategy, and negotiation tactics and introduce a formal decision model to show the relations among these concepts. We show how high‐level negotiation goals can be formally mapped to low‐level tactics that can be used to affect the behavior of a negotiation system during the negotiation process. In business, a business organization faces different negotiation situations (or contexts) and determines different sets of goals for different negotiation contexts. In our decision model, a business policymaker sets negotiation goals from different perspectives, which are called goal dimensions. A negotiation policy is a functional mapping from a negotiation context to some quantitative measures (or goal values) for the goal dimensions to express how competitive the policymaker wants to reach that set of goals. A negotiation expert who has the experience and expertise to conduct negotiations would define the negotiation strategies needed for reaching the negotiation goals. Formally, a negotiation strategy is a functional mapping from a set of goal values to a set of decision‐action rules that implement negotiation tactics. The selected decision‐action rules can then be used to control the execution of an automated negotiation system, which conducts a negotiation on behalf of a business organization.     

Dancing on the Slippery Slope: The Effects of Appropriate Versus Inappropriate Competitive Tactics on Negotiation Process and Outcome

As negotiation is critical to all forms of organizational decision-making, researchers have shown an interest in understanding how the flow of information (valid and otherwise) influences this process. Often, competitive, questionable, and unethical tactics have been treated as interchangeable in these studies, despite presumed differences in appropriateness. The purpose of this study was to examine the similarities and differences in negotiators’ use and efficacy of appropriate competitive tactics (e.g., exaggerated offers) versus inappropriate competitive tactics (e.g., factual misrepresentations), primarily through a negotiation simulation. The study found that although these two categories of tactics were correlated in terms of overall use, appropriate competitive behaviors were used more frequently, especially early in negotiations, and these behaviors often resulted in comparable responses from counterparts. While ultimately increasing the likelihood of a negotiation impasse, the use of appropriate competitive tactics improved an individual’s substantive outcome where agreements could be reached. Inappropriate competitive tactics were likely to increase in number the sooner they were first employed in negotiations, with a response of inappropriate competitive tactics to the first use of competitive tactics increasing the likelihood of subsequent use of inappropriate tactics. The implications of these and other findings for both practitioners and future research are discussed.     

‘Joined-Up’ Policy-Making: Group Decision and Negotiation Practice

Creating public value is problematic in a world of austerity. Joint private and public, and public-public, projects are now an established way of creating public value. Establishing joint goals within a context of different ‘own goals’ is important and difficult. A particular issue facing many organisations in seeking to negotiate joint goals in a collaborative project is that of getting all the key managers from both organisations together over enough of a sequence of meetings for agreements to be meaningful and owned by those who will deliver the project. The development of such goals can be significantly enhanced by (1) using a Group Decision Support System (GDSS) and (2) using a powerful conceptualisation of a goals framework comprising: a goals system; ‘core goals’; ‘meta-goals’; ‘negative’ goals; and ‘above and beyond’ goals. In the case of negotiating joint goals the use of a GDSS has increased productivity to such an extent that powerful negotiated agreements can be achieved with all key managers in the room in as little as one meeting. The combination of high productivity, anonymity, and the structuring of the data has also facilitated the uncovering of ‘negative goals’, and the development of ‘meta-goals’ and ‘above and beyond’ goals. This paper uses three real cases to illustrate the significance of a Group Support System’s contribution and to illustrate the different types of goals. In doing so the paper suggests that facilitating such outcomes requires a carefully designed strategic conversation necessarily supported by a GDSS to enable group decision and negotiation in practice. Two of the cases are from public-public collaboration in the health field, and the other from a private-public setting.     

The MARS Approach in the Verbal and Holistic Evaluation of the Negotiation Template

The negotiation template, which defines a set of potential negotiation offers, is traditionally evaluated by means of the simple additive weighting method (SAW). However, some recent research reports on the potential problems and inconsistencies in using and interpreting SAW-based scores. Thus, in this paper we consider the issue of evaluating negotiation offers when the negotiator’s preferences are expressed verbally. We present a new approach called Measuring Attractiveness near Reference Situations (MARS), which combines the algorithms of two multiple criteria decision making methods: ZAPROS and MACBETH. Applying the elements of ZAPROS allows identifying a small set of reference alternatives that consists of the best resolution levels for all the negotiation issues but one. In pair-wise comparisons of these alternatives negotiators need to evaluate trade-offs only, which means deciding which concessions are better to be made. Using the elements of MACBETH allows determining the strong interval scale based on verbal judgments defined by negotiators at the beginning of the preference elicitation process. We study in detail the legitimacy of hybridizing ZAPROS and MACBETH that differ in their philosophies of decision support as well as discuss the drawbacks of these two MCDM methods and propose some alternative solutions that make this approach applicable to supporting negotiators in the evaluation of negotiation offers. Finally, we present an example in which we indicate the differences in the negotiation offers’ scoring process conducted by means of MARS and the traditional ZAPROS and MACBETH procedures.     

Negotiation Support Through Interactive Dominance Relationship Specification

Group Decision and Negotiation - Preference evaluation is a key aspect of multi-issue negotiation support, especially when the set of possible alternative offers is large. Approaches based on...     

On Creating and Claiming Value in Negotiations

This paper presents a negotiation model that includes value creation. It shows that creative negotiation efforts tend to intensify toward the deadline, and that the deadline is determined endogenously by the tension between two motives, creating more value and claiming from existing value. When the parties can present misleading offers in order to claim rather than create value, the outcome in early negotiation rounds may display an impasse where any proposal is rejected without inspection, while negotiation activities such as value creation through sincere offers and inspection of clauses intensify toward the deadline.     

NegoManage: A System for Supporting Bilateral Negotiations

In this paper we present the NegoManage system, which aims at supporting the bilateral negotiation during all negotiation phases. The support includes the problem structure identification, the analysis of individual preferences of both parties, the messaging and offers exchange and the post-negotiation improvements of the agreement. The preference analysis is supported with a novel mechanism involving the specification of the classes of alternatives’ quality that represent particular levels of potential satisfaction from accepting this alternative as the negotiation solution. The consistency of preferences is also checked. The actual negotiation phase is performed in a typical way, namely the negotiators exchange multiple offers and messages. The novelty introduced in this phase is the mechanism for profiling the negotiators based on the classification of exchanged messages. The post-negotiation optimization phase employs the concept of a bargaining solution for improving the solution obtained in the previous negotiation phase. We present the way the mechanisms proposed work using simple numerical examples.     

The ethics of alterity and the teaching of otherness

This paper proposes that Levinas's philosophy of alterity and infinitude – based upon the ethical relation between Self and Other – is both profound and limited in its ability to account for social practice. Instead of simply accepting the common criticism of Levinas, however, that he places an intolerable ethical burden of infinitude upon human relations, this paper aims to move beyond this impasse by placing Levinas's metaphysics within a frame that privileges the dynamic between the Self and the Other as a socially oriented, participative practice of teaching and learning. It is suggested that Etienne Wenger's work on the emergence of identity as a constant negotiation between the Others and the Self provides a conceptual framework for how business ethics may be owned, negotiated and learned within organizational communities without sacrificing the horizon of infinitude bestowed upon us by Levinas's ethical philosophy. Finally, the practical implications of such a comparative approach for the teaching of alterity in business ethics are discussed.     

Strategies and language trends in learning success and failure of negotiation

In negotiation by electronic means, language is an important deal-making tool which helps realize negotiation strategies. Negotiators may use language to request information, exchange offers, persuade, threaten, as well as reach a compromise or find prospective partners. All this is recorded in texts exchanged by negotiators. We explore the language signals of strategies—argumentation, persuasion, negation, proposition. Leech and Svartvik’s approach to language in communication gives our study the necessary systematic background. It combines pragmatics, the communicative grammar and the meaning of English verbs. Language signals become features in the task of classifying those texts. We employ Statistical Natural Language Processing and Machine Learning techniques to find general trends that negotiation texts exhibit. Our hypothesis is that language signals help predict negotiation outcomes. We run experiments on the Inspire data. The electronic negotiation support system Inspire was gathering data for several years. The data include text messages which negotiators may exchange while trading offers. We conduct a series of Machine Learning experiments to predict the negotiation outcome from the texts associated with first halves of negotiations. We compare the results with the classification of complete negotiations. We conclude the paper with an analysis of the results and a list of suggestions for future work.     

Preference adjustment and opportunities for agreement: Decision modeling to assess negotiating flexibility at UNCED

This paper develops a conceptual framework and applies it to analyze the dynamics of national interests in prenegotiation. The study's goals are to develop a systematic approach for analyzing prenegotiation processes and provide results that will have practical utility for negotiators. Specifically, the approach is applied to the prenegotiation process of the 1992 United Nations Conference on Environment and Development (UNCED), examining the financial resources issue, in particular. Decision analytic models were built to account for three key negotiation actors, and sensitivity analyses were performed to evaluate the incremental modifications to issue preferences required to achieve mutually acceptable compromises. Conclusions are drawn that indicate the extent of flexibility required of key negotiation actors to take advantage of the opportunities for agreement in the financial resources issue area. The conceptual framework and methodological approach explored in this paper can provide practical assistance as a planning tool for negotiators, helping them to diagnose the situation and plan strategies for future environmental and other multilateral negotiations. The approach can suggest specific opportunities for compromise and the degree and type of flexibility needed to achieve a convergence of interests on the issue.     

Ups and Downs: Emotional Dynamics in Negotiations and Their Effects on (In)Equity

Organizational scholars now acknowledge the relevance of emotions in virtually every aspect of organizational life, including negotiations and conflict resolution. Integrating negotiation phase model theory with social functional models of emotion, we test hypotheses about the development of emotions in negotiations and their effects on the degree of economic (in)equity of the counterpart’s subsequent offer during the actual negotiation process. By comparing stalemate dyads with efficient settlement dyads, the study identifies emotional dynamics that characterize successful as opposed to unsuccessful negotiations. Results show that observed differences are primarily the result of impasse dyads spiraling into a negative emotional climate rather than efficient settlement dyads having overall higher levels of positive emotions or increasing them throughout the negotiation process. As predicted by social functional models, the study further confirms that emotions are not only a reaction to the economic (un)fairness of a proposed offer, but their display also influences the payoff (in)equity of the counterpart’s subsequent offer. Whether a specific emotional expression increases or decreases the economic fairness of the counterpart’s subsequent offer, however, differs across negotiation phases and between dyads that reached an agreement or not. Furthermore, the results show distinct differences between emotions that address individual goal realization in negotiations and emotions that focus on the relational, interpersonal aspect of negotiations, both with regard to their development as well as their function. Taken together, the results shed light on the mechanisms leading to the emergence of conflict spirals.     

Influence of Affective Traits on Entrepreneur's Goals and Satisfaction

Emotions are important to an individual's behavior. However, affective elements have rarely been included in the analysis of entrepreneurs' behavior. Using a sample of 335 entrepreneurs from multiple industries of the Spanish region of Castile and León, we analyze the role of emotions in entrepreneurs' statement of goals and in their satisfaction with business performance. The results show that positive affective traits influence an entrepreneur to state broad and ambitious goals, and personal negative affective traits influence an entrepreneur to state a narrow set of goals. We also find that positive (negative) affective traits are positively (negatively) related to entrepreneur satisfaction.