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

Abstract

The purpose of this study was to conduct empirical research into the effects of a highly structured, interactive computerized Negotiation Support System (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, pairs of bargainers played the role of manufacturers negotiating a four-issue, three-year purchase agreement for an engine subcomponent. Conflict level was manipulated by varying the amount of conflict of interest between the bargainers. For low conflict conditions, different weights were assigned for the issues so that mutually beneficial trade-offs were possible. The high conflict treatments featured the issues for both parties being weighted similarly, creating a situation in which one party's gain was almost equal to the other one's loss. The NSS used in this study provided computer support throughout a structured integrative bargaining process. Electronic communication between bargainers was provided for inputting their comments and proposals, displaying them on a public screen, and viewing each others' inputs on their private screens. An interactive Decision Support System supported each individual negotiator in the generation and evaluation of contract alternatives. The specific variables measured included joint outcomes, contract balance, negotiation time, the number of contracts proposed, and post-bargaining attitudes. The results of the study showed that NSS support did help bargainers achieve significantly higher joint outcomes and more balanced contracts, and that the NSS support significantly increased negotiation time. Satisfaction was significantly greater for NSS groups in both conflict levels, and perceived negative climate was significantly reduced in low conflict. Both types of computer software used in the study were given favorable evaluations by the subjects in terms of ease of use and usefulness.