Knowledge and the Sequential Processes of Negotiation: A Markov Chain Analysis of Response-in-Kind

Abstract

The impact of tactical knowledge on integrative and distributive response-in-kind behavior sequences and the ability to shift from distributive to integrative behaviors were examined using data from a prior study. Ninety dyads engaged in a multi-issue joint venture negotiation. Forty-five dyads were provided tactical knowledge and the other 45 were not. Markov chain analysis was used to test the hypotheses. A second-order chain best fit the data. Results showed that negotiators responded-in-kind to both distributive and integrative tactical behavior regardless of tactical knowledge. In line with Weick's (1969) “double interact” proposition of interlocked behaviors, negotiators with tactical knowledge were more likely to respond-in-kind to integrative behavior than were those without such knowledge, but only after their previous integrative behavior had been reciprocated. In addition, negotiators with tactical knowledge engaged in longer chains of integrative behavior (regardless of the behavior of the other party) than did negotiators without tactical knowledge; however, this only occurred after two integrative behaviors had occurred previously.