Concessions Dynamics in Electronic Negotiations: A Cross-Lagged Regression Analysis

Abstract

We analyze concession patterns in electronic negotiations using a modified version of the Actor–Partner Interdependence Model (APIM). Our extension of the APIM takes into account that concessions in negotiations can only be evaluated in terms of utilities of the receiving side. We show that actor and partner effects in that model can directly be related to central concepts of negotiation theory such as cooperative versus distributive bargaining tactics and reciprocity. Based on this connection, we formulate hypotheses on the differences of actor and partner effects between successful and failed negotiations. We test these hypotheses on two existing data sets. Results show consistent and strong actor effects, while partner effects are only present in specific settings.