The Effects of Multimedia Communication on Web-Based Negotiation

With the rapid growth of electronic commerce, there is growing demand forremote online negotiations. Although the Internet now enables audio and video communication, most Web-based negotiation systems are still text-based. There is, however, a lack of research on the effects of multimedia on remote negotiations. In this paper, we present a theoretical model to investigate the impacts of multimedia communication in an online negotiation setting. The constructs in our model include communication efficiency, communication effectiveness, and positive and negative social-emotional communication. Through a simulated house purchasing negotiation experiment, we study how different multimedia combinations (text only; text with audio; text with audio and video) affect our constructs and thus further influence negotiation results. Our results showed that both text with audio and text with audio and video communication were significantly preferred to text alone. However, the addition of video to text and audio communication in a negotiation environment was not found to be beneficial. It did not significantly improve communication efficiency, effectiveness or positive social-emotional communication, but distracted negotiators from focusing on the negotiation task. Our analysis also revealed that the communication efficiency construct did not correlate with the perceived success of the negotiation solution; however communication effectiveness and social-emotional communication did correlate with negotiation satisfaction.     

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.     

“I am Disgusted by Your Proposal”: The Effects of a Strategic Flinch in Negotiations

To flinch in negotiations refers to verbal or physical displays of shock, disgust, or disbelief made in response to an opening offer. We investigated the impact of advising negotiators to strategically flinch in distributive bargaining. In experiment 1, negotiators who flinched claimed significantly more value than negotiators who did not flinch. Targets of a flinch, however, viewed the negotiation relationship less positively than negotiators in a control condition. Yet, flinching appeared to have no effect on the target negotiators’ perceptions of how well they did. In experiment 2, the notion that a subtle flinch might still facilitate value claiming but without imperilling the bargaining relationship was supported. Implications for negotiation theory and practice, and directions for future research, are discussed.     

Social Motives and Trust: Implications for Joint Gains in Negotiations

This study examined the role of trust via contingency model in a multi-issue multi-party negotiation setting and how it relates to outcomes. Results of a laboratory experiment with 288 undergraduate students confirmed both a main effect of Social Value Orientations (SVO), such that cooperative negotiators achieved higher joint gains than pro-self negotiators, and a main effect of Motivational Orientations (MO), such that pro-social negotiators attained higher joint gains than egoistic-oriented negotiators. Furthermore, the predicted interaction effect between SVO and MO, such that negotiators with a pro-self SVO attained higher joint gains in a pro-social, in contrast to an egoistic MO, condition was confirmed. This effect was fully mediated by trust. The dimension of trust that explained the SVO and MO interaction was that of concern for fellow negotiators as rated by oneself, as well as by an objective third-party observer. Implications for the strategic use of social motives and trust on effective information exchange and negotiated outcomes are discussed.     

A prototype NSS based on problem structure and suggestions toward more comprehensive negogiation support

Seeking an effective approach to supporting negotiation through the use of computer technology, we have constructed a prototype negotiation support system based on the concept of problem structure. Problem structure refers to the characteristics of the feasible settlement space and efficient frontiers as defined by the joint utility distribution of negotiators' utilities. Problem structure is recognized as playing a major role in negotiation processes and outcomes. The cognitive complexity and inherent uncertainty of typical negotiations make it difficult for negotiators to effectively visualize and “navigate” the settlement space defined by the problem structure. As a result, negotiators often resort to suboptimizing heuristics which produce inefficient and/or unsatisfying outcomes. It follows that a promising approach to negotiation support is to exploit the computational speed and graphics capabilities of computer technology to make problem structure and its implications more accessible. Thus, our prototype is designed to allow negotiators to hypothesize problem structure and to explore and manipulate the resulting settlement space quickly and easily. Preliminary experimentation has demonstrated the value of this approach and has suggested areas for extended, comprehensive support. A negotiation process formalism, Cognitive Action Theory, neural network technology, and computer simulation are well-suited to providing more comprehensive support, and we suggest an architecture for delivery through NSS.     

Hot Versus Cool Behavioural Styles in Electronic Negotiations: The Impact of Communication Mode

In this paper, we study the effects of synchronous and asynchronous communication mode on electronic negotiations. By applying content analysis, we compare the negotiation processes of two e-negotiation simulations conducted in a synchronous and an asynchronous setting. Our results show significant differences in communication behaviour of subjects. Synchronous negotiation mode leads to less friendly, more affective, and more competitive negotiation behaviour. In the asynchronous communication mode, negotiators exchange more private and task-oriented information and are friendlier. These results suggest that negotiators in the asynchronous mode, who have more time to reflect, cool down and control emotions better while negotiators, who communicate synchronously engage more in emotional and competitive “hot” debates. In addition, negotiators in the asynchronous mode are more satisfied with the process and outcome of the negotiation. We conclude that de-individuation and escalating effects might be caused by communication mode rather than by the ability of the media to transmit social cues.     

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.     

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.     

Media Effects on the Formation of Negotiator Satisfaction: The Example of Face-to-Face and Text Based Electronically Mediated Negotiations

Recently, scholars have highlighted the importance of subjective negotiation outcomes such as negotiator satisfaction for future negotiations and the relationship between negotiators. This study considers the major antecedents of satisfaction formation in negotiation and analyses how the communication medium, i.e. the face-to-face (FTF) and the text based electronically mediated (TBEM) mode, influence satisfaction formation. Drawing on grounding in communication (Clark and Brennan in Perspectives on socially shared cognition. American Psychological Asociation, Washington DC, pp 127–149, 1991), hypotheses are developed and tested in an experimental gaming simulation in which graduate students negotiated in n = 52 dyads. The empirical analysis supports the notion that the communication medium has a mediated and a moderating effect on negotiator satisfaction. Aspirations, individual profit and positive relational messages mediate the medium’s effect on satisfaction. Furthermore, the impact of contentious behaviour and positive relational messages on negotiator satisfaction is stronger in TBEM than in FTF negotiations. This study also contributes to the wider negotiation literature by employing a context-rich gaming simulation for experimental purposes.     

Culture and business networks: International business negotiations with Arab managers

The Arab world is an important economic region due to its natural resources, geographic location and political influence. However, limited attention has been paid to researching and understanding the way business is conducted in this region. We address this gap by exploring the key socio-economic, cultural and political factors that influence the negotiation process between Arab and non-Arab managers. Semi-structured interviews were conducted with 30 Arab managers in Lebanon with experience in international business. The findings of the study show that: Arab negotiators place emphasis on building relationships and use referent power (wasta); the political uncertainty influences the bargaining power of the Arab negotiators and political volatility in the country influences the Arab managers’ use of time during negotiations.     

The Effects of Media and Task on User Performance: A Test of the Task-Media Fit Hypothesis

This research was designed to examine the task-media fit hypothesis, an extension to media richness theory that predicts the objective performance of various media for a number of task types. To examine this model, dyads communicating through face-to-face, videophone, telephone (i.e., audio-only communication), or synchronous computer-mediated communication worked in a laboratory experiment to address an intellective or negotiation task. The intellective task required that each dyad member effectively share factual information that each individual independently held. The negotiation task required that each dyad member effectively share preferences based on personal values and reach an agreement. The results of the study provide mixed support for the task-media fit hypothesis. In general, the results for the negotiation task largely supported the theory while the results for the intellective task did not support the theory. These results help to clarify limitations and provide extensions to the theory by demonstrating how variations in task processes and communication media act to mediate task performance. The implications of these results for future research and practice are discussed.     

Negotiation in engineering design

Concurrent design may shorten the duration of a design project, reduce cost, and improve quality of the final design. However, due to the diversified problem-solving knowledge and different goal setting between design agents, it may increase the number of conflicts and make the project more difficult to manage. In this article, a goal-directed negotiation model for resolving conflicts in a cooperative design environment is presented. The proposed model generates negotiation sets, analyzes utilities derived for each design agent, and evaluates them based on three decision rules: maximization of the joint utility, minimization of individual utility differences, and minimization of individual utility differences and maximization of joint utility. A compromise solution is reached iteratively. The approach proposed in this articles is concerned not just with satisfying design constraints, but attempts to maximize system objectives. An example of the poppet relief valve is used to demonstrate the negotiation concept.     

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.     

Reciprocal Cooperation and the Moderating Effect of Individualism: A Five-Country Negotiation Study

ABSTRACT

Researchers have conceptualized the problem-solving approach to include cooperation between negotiators in order to achieve mutually beneficial outcomes. The observed cooperation between parties embodies the concept of positive reciprocity where negotiators match the cooperative bargaining strategy of their counterparts. Using this premise, the current study investigates reciprocity through the relationship between negotiators’ perceptions of their counterpart's cooperative behaviors and their own reported behaviors. The mitigating effect of individualism-collectivism on the above relationship is also explored. The findings provide empirical evidence that negotiators’ perceptions of their counterpart's cooperative behaviors are positively related to their own strategy. This relationship was consistently supported across five groups of business negotiators: Canadian Anglophone, Greek, Mexican, Filipino, and American. However, this positive reciprocal relationship is negated when the negotiator comes from an individualistic-type culture.     

The antecedents of renegotiations in practice—an exploratory analysis

In order to support business negotiations with electronic tools effectively, a deep understanding of real-life business negotiations is required. Comparing the settings usually applied in negotiation experiments with the every-day experiences of business negotiators, it can be stated that the work of business negotiators is much more iterative and embedded. Renegotiations appear on a regular basis. This observation stresses the importance of flawless communication in business negotiations and raises questions regarding the reasons for renegotiations and the role of information technology in this context. This paper investigates data gathered in a 2005 survey study in order to identify the context factors that drive B2B renegotiations using a preliminary regression model. The rules of interaction, task complexity, and business relationship are found to be significant predictors of the renegotiation likelihood while media richness does not impact the likelihood of renegotiations in practice.     

An empirical study of an interactive,session-oriented computerized Negotiation Support System (NSS)

Negotiating is one of the four major decisional roles played by managers. In fact, resolving conflict is said to occupy 20% of a manager's working hours. This growing frequency of negotiation scenarios coupled with the increasing complexity of the issues which need to be resolved in a negotiation make the possibility of computer enhancement for negotiation very appealing. Implementations of computerized Negotiation Support Systems (NSS) in the business world, international affairs, labor law, and environmental and safety disputes have demonstrated their potential for making negotiation problems more manageable and comprehensible for negotiators. Still, pioneers in NSS research have expressed their dismay at the lack of rigorous empirical research and evaluation of NSS. In particular, research is needed which will determine how and under what circumstances negotiation processes can be enhanced by NSS support.This article describes empirical research on the effects of a highly structured, interactive NSS on the outcome of face-to-face issues resolution and the attitudes of negotiators in both low- and high-conflict situations. In a laboratory experiment, bargaining dyads played the roles of manufacturers negotiating a four-issue, three-year purchase agreement for an engine subcomponent in conditions of high and low conflict of interest. The results of the study showed that NSS support did help bargainers achieve higher joint outcomes and more balanced contracts, but that the NSS support increased negotiation time. Satisfaction was greater for NSS dyads in both conflict levels, and perceived negative climate was reduced in low conflict.One primary implication of the results of this study is that NSS developers should keep in mind the importance of providing users with a system with interactive qualities which not only enhance the decision-making process but also provide them with a sense of participation in reaching the solution, as was done in this study.     

Towards a Structured Design of Electronic Negotiations

Global communication networks and advances in information technology enable the design of information systems facilitating effective formulation and efficient resolution of negotiation problems. Increasingly, these systems guide negotiators in clarifying the relevant issues, provide media for offer formulation and exchange, and help in achieving an agreement. In practice, the task of analysing, modelling, designing and implementing electronic negotiation media demands a systematic, traceable and reproducible approach. An engineering approach to media specification and construction has these characteristics. In this paper, we provide a rationale for the engineering approach that allows pragmatic adoption of economic and social sciences perspectives on negotiated decisions for the purpose of supporting and undertaking electronic negotiations. Similarities and differences of different theories that underlie on-going studies of electronic negotiations are identified. This provides a basis for integration of different theories and approaches for the specific purpose of the design of effective electronic negotiations. Drawing on diverse streams of literature in different fields such as economics, management, computer, and behavioural sciences, we present an example of an integration of three significant streams of theoretical and applied research involving negotiations, traditional auctions and on-line auctions.     

Negotiating alliance contracts: Strategy and behavioral effects of alternative compensation arrangements

A key issue in alliances (defined here as any cooperative or joint activity between two or more firms) is the payment or compensation structure stated in the formal agreement between the parties. These days, most agreements include a multiplicity of payment types, including royalties, lumpsum payments and returns on equity. The paper outlines reasons for this and presents a general framework for alliance negotiations. A simulation example shows key negotiation variables, together with non-zero-sum tradeoffs between them. Each map of variable pairs indicates a ‘zone of mutual benefit’ where the joint profits of both partners can increase. There is often a contradiction between profit maximization and other strategic, behavioral, tax and regulatory considerations which themselves point in non-congruent directions for structuring the alliance. No wonder alliances are such fragile things! Nevertheless, alliances are an indispensable part of the management landscape, and negotiators must know how to structure them. The approach outlined in this paper, the simulation method presented, the caveats indicated for non-financial variables, and the behavioral responses to each, will however help companies to craft better and longer-lasting alliances.     

Power imbalance and the pattern of exchange in dyadic negotiation

We investigate how a key structural aspect of negotiation—power—combines with aspiration level to affect the interaction pattern of negotiators. Conflicting research findings have revealed that in most cases negotiators with anequal balance of power reach agreements of higher joint gain than negotiators with an unequal power balance, but in some instances the opposite result has been found. We suggest that it is important to consider the interaction between the negotiators to explain these varying findings. We propose that when unequal power negotiators are able to reach agreements of high joint gain it is due to the efforts of the low power party. In addition, we argue that the low power player will be most likely to drive the search for a solution of high joint gain when he or she also has high aspirations. We tested these proposals in a market negotiation with integrative potential. To examine the pattern of negotiation, all offers and counter-offers were written. The results indicated that overall, equal power dyads achieved higher joint outcomes than unequal power dyads. Under unequal power, the hypothesis that higher joint outcomes would be obtained when the low power player had high aspirations received partial support. In addition, support was found for the hypothesis that in unequal power dyads low power players would be responsible for driving solutions of higher joint gain.     

Dimensions of International Negotiation: A Test of Iklé's Typology

Results from statistical analyses of 30 cases of international negotiations supported Iklé's typology of negotiating objectives. The cases, sampled from the collection of Pew Case Studies in International Affairs, were distinguished in terms of five objectives: innovation, redistribution, extension, normalization, and side effects. In addition, a sixth objective was identified: negotiations concerning the creation of multilateral regimes. These cases focused on issues that surfaced on the international agenda during the 1980s. Each type had a relatively distinct profile based on such aspects of negotiation as the number of parties and issues, bargaining strategies, media exposure, stability of the process, and types of outcomes. The methodology contributes to the state-of-the art in comparative analysis and the results have implications for the development of middle-range theories of negotiation. They also contribute to practice, by enabling negotiators to evaluate future cases in terms of knowledge about past cases.