Mutually Dependent: Power,Trust, Affect and the Use of Deception in Negotiation

Using a simulated two-party negotiation, we examined how trustworthiness and power balance affected deception. In order to trigger deception, we used an issue that had no value for one of the two parties. We found that high cognitive trust increased deception whereas high affective trust decreased deception. Negotiators who expressed anxiety also used more deception whereas those who expressed optimism also used less deception. The nature of the negotiating relationship (mutuality and level of dependence) interacted with trust and negotiators’ affect to influence levels of deception. Deception was most likely to occur when negotiators reported low trust or expressed negative emotions in the context of nonmutual or low dependence relationships. In these relationships, emotions that signaled certainty were associated with misrepresentation whereas emotions that signaled uncertainty were associated with concealment of information. Negotiators who expressed positive emotions in the context of a nonmutual or high dependence relationship also used less deception. Our results are consistent with a fair trade model in which negotiator increases deception when contextual and interpersonal cues heighten concerns about exploitation and decrease deception when these cues attenuate concerns about exploitation.     

Perceived Relative Power and its Influence on Negotiations

In an experimental study, we investigate perceived relative power in negotiations and its effect on the distribution of resources and the integrativeness of agreements. We contrast perceived relative power with the objective individual level measure of power often used in past research: the parties alternatives to a negotiated agreement. We found that alternatives affected the distribution of outcomes, while perceived relative power and alternatives affected the integrativeness of outcomes. We found that negotiating pairs who perceived a smaller difference in relative power reached agreements of greater integrativeness than pairs who perceived a greater power difference, even after controlling for alternatives and aspirations. We explore the implications of treating power in negotiations as a perceived and relational construct.     

The impact of minimum goals and aspirations on judgments of success in negotiations

Experiment 1 examined the impact of minimum goals and aspiration values on feelings of success. Negotiators with low minimum goals felt more successful than did those with higher minimum goals, even though their final settlements were identical. Furthermore, negotiators with low aspirations felt more successful than did negotiators with higher aspirations, even though the final settlement was identical. Experiment 2 examined the relative impact of minimum goals and aspirations and found that aspirations influenced negotiators' perceptions of success more than did minimum goals. Experiment 3 examined how goals affected the demands negotiators made to their opponents. Negotiators with low minimum goals and high aspirations demanded more from their opponents than did negotiators with high minimum goals and low aspirations. In general, aspirations, as compared to minimum goals, exerted a more powerful influence on the demands people made to others in negotiations and how successful they felt about negotiated outcomes.This research was supported by grants from the National Science Foundation, #SES8921926, #SE9210298, and PYI9157447. Research reported in this article was completed while the author was a fellow at the Center for Advanced Study in the Behavioral Sciences with the support of NSF grant SBR8921926. I thank Terri DeHarpport, Dennis Hrebec, and Linda Palmer for helpful comments and suggestions on earlier drafts of this article.     

The Global Market for Power Tools

The global demand for power tools rose from $19.0 billion in 1999 to $22.8 billion by 2004 and is expected to increase to $29.2 billion in 2009. The annual rate of growth was 3.7 percent during 1999-2004; the projected rate during 2004-2009 is 5.0 percent. This reflects accelerating growth in developing regions, with the most promising opportunities occurring in Latin America, Africa/Mid-East, and Asia-Pacific. Electric tools (plug-in and cordless) dominate world demand, comprising three-fourth of shipments in 2004. Commercial users accounted for 70 percent and households for 30 percent of total sales, a ratio that should prevail during the coming years. North America accounted for 40 percent of total demand but for only 30 percent of production, as U.S. firms shifted operations to countries with lower wages. While hundreds of companies offer power tools, only a few firms hold significant market share. The leaders are Black and Decker (United States), Bosch (Germany), TechTronic (Hong- Kong), Makita (Japan), and Hitachi (Japan); together they accounted for 37 percent of global sales in 2004. JEL Classification L640     

理解差异驾驭冲突寻求共识 --银行引资谈判策略研究

引资谈判涉及当事各方的商务安排与利益调整,主要包括认股价格、投资组合、业务合作、董事席位及公司章程修改等内容。由于中外文化背景不同和法律环境差异,使得引资谈判始终贯穿着观念碰撞与观点冲突。面对诸多难点,成功的谈判必然是中外双方在理解文化和法律差异基础上坦陈分歧、寻求共识的过程。     

The impact of a biased starting position in a single negotiation text type mediation

This article examines whether a biased starting position impacts the outcome of negotiations using a Single Negotiating Text (SNT) (Raiffa 1982) type, two-party mediation. Two separate experiments were conducted, one in Helsinki and one in New Mexico, that systematically tested this issue and related questions. The article argues that, if a biased starting point is not compensated for by the path taken in subsequent steps, the bias will have considerable impact on the final outcome of the negotiations. In both experiments, the mediator played a very insignificant role, since the bias was incorporated into the text prior to the initiation of the exercise. In actuality, the experimenter played the role of the mediator, but only facilitated an exchange of information between the parties. The results of our experiments strongly support the hypothesis that such bias has a significant impact on the outcome of the negotiations. The article concludes by presenting suggestions for developing starting SNTs.     

The effects of reciprocation wariness on negotiation behavior and outcomes

This study examined the influence of reciprocation wariness, a general fear of exploitation in interpersonal relationships, on negotiators’ motivational orientation, direct information sharing and negotiation outcomes. We predicted that low-wary negotiators are more likely to be prosocial and to engage in direct information sharing, and low-wary negotiators will perceive their opponents more positively after the negotiation. We asked 150 graduate students of business administration to formed 75 dyads to participate in a simulated business negotiation, each taking the role of a buyer or a seller. The results showed that reciprocation wariness had a significant effect on negotiators’ motivational orientation and the amount of information sharing. Negotiating dyads with low–low reciprocation wariness got higher joint gains than those with high–high reciprocation wariness, and information sharing fully mediated the relationship. After the negotiation, low-wary negotiators evaluated the other party more positively and were more willing to interact with their opponents in the future. Contributions and limitations are discussed.     

The effect of communication medium on negotiation performance

Concepts of media efficiency and media richness are employed to describe the impact of communication media on two key aspects of negotiation behavior—reducing uncertainty about the task, and managing equivocality about negotiator's bargaining orientation. A controlled experiment was conducted to examine how the use of either audio or text forms of verbal communication, and the presence or absence of visual communication, impacts negotiation performance in a bilateral monopoly task. Each member of a pair of negotiators received private instructions either to maximize joint profit (a cooperative bargaining orientation) or to maximize individual profit (an individualistic bargaining orientation). Negotiation performance was measured via the total amount of relative cooperativeness of verbal communication and joint profit. In the audio mode as opposed to the text mode, the total amount of verbal communication and joint profit was increased. In the presence of visual communication the relative cooperativeness and joint profit of pairs of individualistic negotiators was less than that of cooperative negotiators. In the absence of visual communication the relative cooperativeness and joint profit of pairs of individualistic negotiators was no less than that of cooperative negotiators. In sum the findings suggest that uncertainty regarding the logical structure of the task was reduced primarily via verbal communciation, while equivocality regarding the bargaining orientation of the other negotiator was reduced primarily via visual communication. The implications for group decision and negotiation research and practice are explored.     

Defining a right problem in group decision and negotiation: Feeling and evolutionary generating procedures

It is not unusual that decision makers define and solve a wrong problem. Here we develop an operational procedure for defining a right or correct problem. A problem may be represented as—a problem representation defining a problem consists of—two evolving hierarchies of relations, as discussed in the article. Rightness in a problem representation requires rightness in these relations which are beliefs held by a decision maker. Operational definition and validation of rightness in these relations, that is, retaining them as correct, is by feeling and by specified evolutionary generating procedures for examining, changing (evolving), and retaining these relations. Based on rightness in these relations, we discuss right group problem definition and solution in the general case where information is not fully shared (nonshared) among individuals in the group. Thus, our work contributes to procedural rationality—how decisions should be or are made—in individual and group decision-making and associated group decision and negotiation support systems (GDNSS).     

Perspectives on representation and analysis of negotiation: Towards cognitive support systems

The rapid expansion of Decision and Negotiation Support Systems has been built mainly on decision-theoretic approaches. This has resulted in the decision maker being viewed through the lens of the problem. In this article, the focus is on the decision maker's view of the problem. Three levels of problem articulation are described. Special emphasis is placed on the needs level and the implications it carries for the cognitive and instrumental levels. The three levels of articulation, the organizational model of making decision in social settings, and the three basic approaches to decision making form the basis for computer support focused on understanding and change rather than preferences and outcomes. We argue that in the dynamic, interactive context characteristic of negotiations, a cognitive support system based on restructurable modeling provides a richer basis for support.     

Web Services for Negotiation and Bargaining in Electronic Markets: Design Requirements, Proof-of-Concepts, and Potential Applications to e-Procurement

Information Systems researchers continue to develop Web services hoping that, in a near future, these services will be widely offered in the e-marketplace, using a Web-based protocol that is universally adopted for posting, locating and invoking available services. Posting services does not, however, necessarily lead to market transactions, and a number of brokering activities are needed to facilitate trade. These include, but are not limited to, service discovery and ranking, price negotiation and contract preparation. We propose a set of Web services that support the process of negotiation and bargaining to facilitate the matching of supply and demand of Web services. As a market broker, these web services would help (a) discover the supply/demand of web services in e-marketplaces; (b) find the most appropriate available service for a specific request; (c) facilitate services be modified if needed to satisfy user's needs; (d) arbitrate the pricing mechanism with the recourse to bargaining whenever necessary; and (e) generate a contract. As a proof of concept, we illustrate the potential use of Web services for negotiation and bargaining in e-procurement.     

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.     

Spatial competition and market power in banking

Banks in non-metropolitan areas compete in a spatially differentiated environment. Non-metro community banks have been insulated from increasing competition from metro banks due to their reliance on soft information in relationship lending. Proximity to borrowers, therefore, may be an important source of market power for non-metro community banks. This paper estimates a structural model of the supply and demand of banking services in which pricing power is allowed to depend explicitly on the distance between rival banks. A spatial autoregressive econometric model shows that approximately 38.0% of economic surplus earned by firms in non-metropolitan banking in the upper midwest is due to spatial market power.     

人民币汇率波动对中美贸易失衡影响的实证研究

中美贸易失衡一直是国内外讨论的热点话题。特别是入世以后,中美贸易顺差高速增长。以美国为首的发达国家将中国的巨额贸易顺差归咎于人民币被低估,并一再施压,要求人民币升值,认为只有这样才能扭转美国对华持续逆差。那么,人民币币值波动究竟是不是中美贸易失衡的主要原因?人民币升值能否解决中美贸易失衡的问题?本文通过建立模型,运用ADF检验、协整检验、格兰杰因果检验等方法分析了2005年7月至2010年12月人民币汇率与中美贸易收支的关系,并根据实证分析结果,提出相应的对策建议。     

高等学校学术权力与行政权力关系刍议

本文首先分析了我国高等学校内部权力资源的分配具有情境性和模糊性的特点,更由于“双肩挑”现象的存在使得权力主体的判定难度增加,所以在实践策略上,应该淡化两种权力——学术权力与行政权力“异同”的比较,提倡依据具体情境的不同,正确行使权力,做出最为合理决策的权变观点。     

Negotiating in the European Union: Comparing Perceptions of Eu Negotiators in Small Member States

Negotiation is one of the major tasks of the 15 member states comprising the European Union (EU). However, not much is known about the behavior and perceptions of those negotiating on behalf of these member states. On the basis of the responses to a survey of EU diplomats and civil servants of the Netherlands, Belgium, Denmark, Ireland, and Portugal, an attempt has been made to develop a profile of "the" European Union Negotiator. The EU negotiator is less outspoken and more likely to compromise than an "ideal" profile of the diplomatic negotiator. While negotiators from these member states share important behavioral and attitudinal proclivities, they also differ in many significant ways. This healthy diversity of negotiating approaches is likely to be nurtured by the cooperative and synergistic atmosphere within the European Union.     

Getting the Floor: Motive-Consistent Strategy and Individual Outcomes in Multi-Party Negotiations

Social motives influence negotiators actions and reactions. In this study we proposed that social motives moderate the relationship between persistence in the use of integrative or distributive negotiation strategy and individual outcomes in 33 four-person mixed-motive negotiations. Cooperative negotiators who persisted in using integrative strategy achieved higher outcomes than those who did not persist. Persistence in the use of integrative strategy did not pay off for individualistic negotiators in this multi-party setting. We theorized that this pattern of results was due to cooperative and individualistic negotiators using strategy differently. We found that cooperative negotiators used more motive-consistent integrative strategy and less motive-inconsistent distributive strategy than individualistic negotiators, whose pattern of strategy use was consistent with their self-interested motives, providing evidence for our motive consistency theory.     

从博弈论看商务谈判僵局的本质和处理

商务谈判中的僵局是谈判双方都不愿看到但又不得不面对的难题。只有了解了商务谈判僵局产生的本质才能够更好地处理好谈判中的僵局。从博弈论的角度,对商务谈判僵局的本质进行了分析,指出在挖掘共同利益的过程中既可以寻求到瓜分共同利益的有效途径,又可寻找到共同利益与个体利益实现的最佳结合点。     

渠道权力结构的过度倾斜与权力失效——基于农产品营销渠道的研究

本文通过对中国农产品营销渠道的考察,发现了渠道权力结构的过度倾斜与权力的失效问题。作者认为,在渠道权力结构理论背后存在着一个隐含命题,即渠道关系双方的规模与实力应当是对等的,或者二者之间的反差在一个合理的区间内。在渠道关系中,如果一方是为数众多、分散且规模弱小的成员,而另一方是规模巨大、实力较强的成员时,就会出现权力结构的过度倾斜,而当渠道中权力弱势地位一方采取一致性的“反抗”行为时,权力优势成员的权力就会失效。     

Profits and perils in the antiques and collectibles market: the influence of product knowledge structures on dealer exchange outcomes

The secondary market for antiques and collectibles represents a disorganized market channel characterized by competition for supply of rare goods and retail sales arising from non-traditional channels, loose ties among channel members, and largely unregulated transactions between buyers and sellers. This study explores how knowledge structures affect dealers' abilities to turn a profit in the antiques and collectibles market. Data were obtained from in-depth interviews with eight professional antiques and collectibles dealers operating in different regions of the United States. Findings indicate that while information is widespread, its credibility can be difficult to assess without some degree of product and market knowledge. Furthermore, the findings show knowledge plays a critical and somewhat differential role in the ability of professional dealers to turn a profit. Knowledge asymmetries that create favorable conditions for profits when dealers hold the balance of informational power in the upstream acquisition of antiques and collectibles ironically reduce dealers' ability to earn profits in downstream resale of these goods. Findings support a multidimensional view of knowledge as a broader concept, based on information and product and market expertise, but deepened by experiences that lead to tacit knowledge, which can be difficult to transmit.