The impact of expectation of future negotiation interaction on bargaining processes and outcomes |
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Authors: | Charles Patton PV Balakrishnan |
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Institution: | a Columbia Business School, Columbia University, New York, NY 10027, United States b Business Program, University of Washington, Bothell, WA 98021, United States |
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Abstract: | This research conceptualizes and experimentally tests differences in pre-negotiation behavioral influences, negotiation processes, negotiation outcomes, and post-negotiation dispositions involving buyers and sellers negotiating under the expectation of future negotiation interaction (EFNI) versus no expectation of future interaction (Non-EFI). EFNI bargainers have lower aspiration levels, expect the negotiations will be friendlier, and predominantly use a problem-solving bargaining style compared to Non-EFI bargainers. Perforce, EFNI appears to have a strong moderating effect on satisfaction as Non-EFI bargainers' satisfaction is strongly predicated on their monetary outcomes (expectation-disconfirmation paradigm), while EFNI bargainers' satisfaction is not. Further, while EFNI negotiations take longer than Non-EFI negotiations, they also produce greater parity between buyers' and sellers' satisfaction, which leads to fewer bargainers being dissatisfied. Thus, compared to one-time negotiations, bargainers in EFNI contexts are more likely to be disposed to bargain again, to enter into negotiations with a harmonious disposition and seek solutions that benefit both parties. |
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Keywords: | Expectation of future interaction Negotiations Bargaining styles Satisfaction Expectancy disconfirmation Aspirations |
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