I Expected More from You: The Influence of Close Relationships and Perspective Taking on Negotiation Offers

Three experimental studies show that interpersonal relationships influence the expectations of negotiators at the negotiation table. That is, negotiators expect more generous negotiation offers from close others (Study 1), and when expectations are not met, negative emotions arise, resulting in negative economic and relational outcomes (Study 2). Finally, a boundary condition for the effect of interpersonal relationships on negotiation expectations is shown: perspective taking leads the parties to expect less from friends than from acquaintances (Study 3). The findings suggest that perspective taking helps negotiators reach agreement in relationships. The article concludes with implications for practice and future research directions.     

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.     

Culture and negotiation

Negotiation has three elements: predisposing factors, process, and outcomes. Process is the art and outcomes is the science of negotiation. Culture adds a new consideration that affects each element. Culture's effects on negotiation are studied using Geert Hofstede's dimensional model of culture. The negotiation process and Hofstede's culture model are combined in four settings. The settings are defined by two factors, if the negotiation is within or between cultures and the role of the participant as a negotiator or intervener. The predicted effects of culture on the process and outcome are detailed for each setting. Then the outcomes of the negotiation decision are discussed in terms of Hofstede's model, especially “Uncertainty Avoidance” and “Masculinity-Femininity” dimensions. Culture clearly influences each aspect of negotiation. Understanding culture can make the participants more effective negotiators and interveners.     

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.     

Data-based negotiator allocation management

Negotiation abilities are difficult to assess, and negotiation outcomes are difficult to predict. This leads to possible deficiencies in resource allocation for negotiation tasks. In this article, we discuss the merits of a data-based approach for the allocation of negotiators to negotiation tasks. We provide a framework for negotiation allocation management that includes a method for assessing negotiator strength. The negotiator strength measure compares observable negotiation outcomes relative to similar outcomes in similar situations. We provide examples for using our framework and show evidence for its appeal when using industry data. We discuss implications for managers and provide key takeaways.     

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.     

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.     

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.     

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.     

To Match or Not to Match? Reactions to Turning Points in Negotiation

This study examines the impacts of process frames and salience of a turning point on negotiators’ responses to a departure during the negotiation process. Results show that individuals negotiating within an integrative-cooperative (as opposed to a distributive-competitive frame) are more likely to interpret the departure as a turning point and match the other’s offer. Similarly, results show that making the departure salient by clearly articulating the intent, content, and function of the turning point offer increases negotiators’ propensity to embrace the mutually beneficial turning point offer. The findings are discussed in light of negotiators’ awareness of events during the negotiation process, their (mis)matching of favorable offers, and relational order theory.     

Nigerian Business Negotiators: Cultural Characteristics

Abstract

This exploratory study examines cultural characteristics of Nigerian negotiators. There is abundant research evidence that culture affects negotiating styles. As Nigeria constitutes a major market in Africa, knowledge of what behavior to expect from Nigerian negotiators can facilitate the negotiation process.

A questionnaire was administered to 200 Nigerian business men and women of the formal private sector of the economy, who were asked to rate themselves along ten dimensions of factors affected by culture. Responses were analyzed according to gender, age group, occupation and regional group. Statistical tests of significance were carried out.

Results reveal that Nigerians involved in negotiation on behalf of their organizations are likely to be relationship oriented and adopt a win-win approach, although the Yoruba may be less so than other ethnic groups. Nigerians will seek a specific form of agreement and avoid wasting time. They are likely to be moderate in formality and display of emotions. Women are much less likely than men to take high risks. An informal style will be more frequent among negotiators with an engineering background. Most Nigerians below the age of 40 who form part of a negotiating team will expect their leader to make decisions based on team consensus.

People from other countries wanting to do business with Nigerians should familiarize themselves with the way culture is likely to influence the 10 negotiation factors. They will then be better prepared to interpret and understand their counterparts' behavior at the negotiation table, and to communicate effectively.     

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.     

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.     

“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.     

Culture's Influence on Business Negotiations in Four Countries

The usefulness of a theoretical model of the determinants of business negotiation outcomes is tested in a simulation with business people from four countries (the United States, Japan, Brazil and Spain). The article is an extension of Graham, Mintu, and Rodgers (1994), and also directly tests Hofstede's and Hall's theories of culture. A problem-solving approach results in higher negotiation outcomes for Americans when their partners reciprocate. Role (buyer or seller) is the key determinant of profits for Japanese negotiations; that is, buyers do better than sellers. For the Spanish negotiators, a problem-solving approach actually yielded lower profits. For the Brazilians, interpersonal attractiveness lead to higher partner satisfaction.     

The ethical profile of global marketing negotiators

As international trade and business opportunities grow globally, insight into trading partners’ strategies is essential. One of the major strategies that impact trading partners’ relationships is negotiation strategy employed by each partner. These strategies assume even greater importance when these strategies have ethical content. This study examines the effects of marketing executives’ preferred ethical ideologies (relativism and idealism), opportunism and Machiavellianism on their perceived appropriateness of unethical negotiation tactics. Utilizing a sample of 995 marketing executives from six countries, cluster analysis and multivariate analysis of variance revealed two types of marketing negotiators: principled and corrupt negotiators. Corrupt negotiators tend to be more Machiavellian, more relativist, more opportunistic and less idealistic than their principled counterparts. Principled negotiators tend to perceive unethical negotiation tactics less favorably than their corrupt counterparts. Implications of these results for practitioners and directions for future research are discussed.     

Resolving the empty core: trust as a determinant of outcomes in three-party negotiations

This research examined how trust affected resource allocation in a three-party negotiation. Negotiators were presented with an empty core problem in which their theoretical share of resources exceeded the resources available for distribution. We tested which of three components of trust—reliability, predictability and empathy—predicted negotiators’ outcomes. We distinguished between absolute and relative trust. We found that relative trust was a more consistent predictor of individual outcomes than absolute trust and that the most trusted party in a network obtained the highest individual outcomes. This finding highlights the importance of social context in shaping trust judgements. The component of trust that predicted individuals’ outcomes was affected by structural power. High and low power negotiators benefited from conveying empathy (identity-based trust), whereas moderate power negotiators benefited from conveying predictability (knowledge-based trust). Low power parties also benefited from appearing unreliable (low calculus-based trust). The research reported in this paper was supported by a grant from the Australian Research Council. An earlier version of this paper was presented at the 2002 International Association of Conflict Management Conference, Park City, Utah.     

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.     

Cultural Perspective Taking in Cross-Cultural Negotiation

This study introduces the construct cultural perspective taking in negotiation, the active consideration of the other party’s culturally-normative negotiation behaviors prior to negotiation, and compares the effect of cultural perspective taking (CPT) versus alternative-focused perspective taking (PT) in cross-cultural negotiations. 160 undergraduate students of North American and East Asian ethnicity in the United States and Canada participated in a simulated cross-cultural buyer-seller negotiation in a laboratory study. Participants were randomly assigned to CPT or PT condition. Results show that negotiators who engaged in CPT claimed more value than those who engaged in PT. And when both East Asian and North American negotiators engaged in CPT, East Asian negotiators claimed more value. CPT had no effect on value creation. This study highlights that learning about the other culture before a cross-cultural encounter benefits value claiming, but not necessarily value creation.