Subsequent Negotiation Research Articles

Empowered or informed? Seeking to mitigate gender differences in first-offer assertiveness through pre-negotiation interventions

Gender differences in negotiation behavior—for instance, men’s vs. women’s likelihood to make (assertive) first offers—contribute to the globally prevalent gender pay gap (GPG). In an attempt to mitigate the social and economic consequences of this gender disparity, we first empirically validated two pre-negotiation message interventions in a pilot study (N = 203). In the main experimental intervention study (N = 585), male versus female participants randomly received this (1) informative message about the GPG, or (2) gender-specific empowering message, or (3) no message in the control condition. In a subsequent negotiation task on the starting salary for a new job, we assessed participants’ (a) likelihood-to-initiate a first offer and (b) first-offer assertiveness. Results showed a remarkably robust behavioral gender disparity: across all conditions, men were more likely to make the first offer (d = 0.178) and made them more assertively (d = 0.339). Importantly, compared to the control condition, the informative (dinform = 0.304) and the empowering (dempower = 0.255) pre-negotiation interventions increased women’s first-offer assertiveness. Similar intervention benefits emerged for men (dinform = 0.259; dempower = 0.284), however, yielding an overall remarkably robust gender difference. To explore the underlying reasons for this gender disparity, we tested four competing psychological mechanisms (i.e., self-esteem, positive and negative affect, GPG awareness, and self-efficacy). Our results highlight the impact that even short, minimal interventions can have on gender differences in negotiation behavior and illustrate which psychological mechanisms explain the emergence of gender disparity in the first place.

Bargaining with Voluntary Disclosure and Endogenous Matching

We investigate a bargaining setting between an “informed” player, who has private information, and an “uninformed” player. The informed player has the option to truthfully disclose private information in two unique environments. In the first environment, the informed player is randomly matched with an uninformed player and, after matching, can voluntarily disclose private information prior to a negotiation taking place. In the second environment, the informed player can voluntarily disclose private information before any endogenous matching between players (and subsequent negotiation) takes place. We begin by examining these environments theoretically. When disclosure occurs after matching, we show that low informed types should disclose more often than high informed types to avoid disagreement. However, when disclosure occurs before matching, for a range of parameter values, we show that high informed types should disclose more than low informed types to secure a better match. We test these predictions in a controlled human-subjects experiment and verify many of the theoretical predictions. Among other results, we find that low informed types do indeed disclose their private information to avoid disagreement and that, when it is in their interest to do so, high informed types disclose their private information to secure a better match. Another key insight is that high uninformed types benefit from disclosure regardless of whether it occurs before or after matching. This paper was accepted by Axel Ockenfels, behavioral economics and decision analysis. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2022.03566 .

Using the Implementation Centric Evolving Climate Change Adaptation Process to bridge the gap between policy and action

With climate impacts increasing in both frequency and intensity and unprecedented climate events having devastating results, the need for timely policy and action to support adaption is not in doubt. However, the gap between policy and action leaves many communities exposed to extreme events and vulnerable to loss of life and livelihoods. This is partly due to the difficulty policymakers face when confronted by climate projections with their inherent uncertainties. Competing sectoral interests and a lack of resources often compound such challenges. To address these issues, the Implementation Centric Evolving Climate Change Adaptation Process (ICECCAP) encases the climate risk assessment in an enabling framework to track resource, knowledge and regulatory needs. This process was applied as part of a UNEP project to support the National Adaptation Plan in Pakistan. A range of climate storylines, describing plausible climate futures and their potential environmental and socio-economic impacts, were developed and discussed with local stakeholders, including policy makers from across levels of governance. The process allowed us to translate complex physical science into narratives that could be communicated clearly to non-technical national stakeholders, forming a basis for subsequent negotiation and decision-making at a local level to address multiple risks and respond to adaptation needs at this finer resolution. This reflects our aim, as part of the My Climate Risk network, to amalgamate bottom-up climate risk assessment with climate projection data that remains meaningful at a local scale. We show how the integration of scientific research and local expert stakeholder views can promote buy-in to adaptation planning. Grounded in a systemic and comprehensive understanding of potential impacts of climate change, this process has implications across socio-economic, environmental and governance spheres.

Влияние Brexit на отношения Великобритании и ЕС в сфере безопасности и обороны

The article deals with the dynamics behind the post-Brexit European Union-UK security and defence engagement which is particularly relevant and critical to understanding the key dimensions and structural features of regional and global security in the foreseeable future. The urgency of the problem is determined by the fact that the decision to leave the UK from the EU, coupled with the subsequent negotiation process in security and defence spheres, taking into account global and local issues, is a serious challenge to the further functioning of the EU as an integration association. To achieve article goals, a structural-functional version of the system analysis is used, aiming at structural characteristics of the UK exit from the EU. The specificity of the object under consideration also predetermined the use of the decisional method, which allows to focus on the decision-making centers (the European Union and Great Britain), the process of developing and implementing decisions in EU_UK security and defence interactions. The empirical base of the study is made up of several groups of official documents that are directly related to the problem. The first group is represented by official treaties and declarations on the Brexit issue. The second group includes materials from the British Foreign and Commonwealth Office, the Prime Minister's Office, analytical reports, the official parliamentary documents. The third group is represented by the documents of the European Union: strategic documents, materials of the European Council, the EU Commission, speeches and interviews of the official representatives. It should be underlined that currently there is no legal framework with which the parties could develop and coordinate joint responses to emerging foreign policy challenges and threats in military security. The question remains whether prospective cooperation will be ad hoc, caused by the need to respond to each specific threat or challenge, or the approach will be more strategic, planned, long-term and proactive. A special factor increasing the entropy of the post-Brexit British-European dialogue on security and defence is the creation of the trilateral military-political association AUKUS with the participation of the United Kingdom, the United States and Australia. The main outcomes of the article include the points that, for the EU, the main challenges of post-Brexit security and defence relations are the inability to use London's scientific and technological potential, its significant experience in countering terrorism, the capabilities of the British naval forces, a high degree of coordination with the US intelligence services. For the UK, significant risks are the restriction or even complete cessation of participation in the CSDP missions, the European Defence Research Program, PESCO projects, the breaking of a large number of technological chains for defence companies.

Contract Design When Relationship-Specific Investment Produces Asymmetric Information

Under conventional contract theory, contracts may be efficient by protecting relationship-specific investment from holdup in subsequent (re)negotiation over terms of trade. This paper demonstrates a different problem when specific investment also provides significant private information to the investing party. This is fairly common: for example, a manufacturer invests to learn about its buyer’s idiosyncratic needs or a collaborator invests to learn about a joint venture. We show how such private information can lead to subsequent bargaining failure and suboptimal ex ante relationship-specific investment. We also show that this inefficiency is worse if the parties enter into a binding and renegotiable contract to trade before the investment is made. This may explain why some preliminary agreements are expressly nonbinding. Finally, we demonstrate that parties may reduce inefficiency by agreeing to negotiate in good faith or other such knowledge-based provisions, especially when these promises are backed by expectation rather than reliance damages.

The Mali Crisis: Security, Democracy, and Protest in the Sahel

Public protest is widely viewed in francophone Africa as a legitimate tool for exerting pressure for political change. This piece explores the role played by mass protest alongside other factors—a national security crisis, failings in political leadership, popular anger at corruption, and, ultimately, a military coup—in leading to the removal from office of Mali's democratically elected president in August 2020. This journalistic account of the Mali crisis shows how the demonstrations played a critical role in creating a mood in the capital city, Bamako, in which a military putsch could bring a new leader into power while also reducing political tensions. The piece concludes that although the subsequent negotiation over transitional power left opposition political factions largely unsatisfied, the opposition may find that this works to their advantage because the new interim government will have to confront daunting national challenges before upcoming elections due to restore constitutional democracy by March 2022.

Self-serving invocations of shared and asymmetric history in negotiations

The existence of an asymmetric history between bargainers can trigger self-serving beliefs about the fair settlement of a subsequent dispute, ultimately leading to bargaining impasse. In a two-stage bargaining experiment we demonstrate that dyads who share a history that produced wealth asymmetries between them are less likely to settle in a subsequent negotiation than when the same wealth asymmetry stems from negotiators’ independent histories. When negotiators share an asymmetric history, the individual who previously lost out in the first stage believes that s/he deserves compensation in the second stage, but the individual who prevailed in the first stage believes that compensation is not warranted. These divergent, self-serving views about a fair settlement – and the resulting irreconcilable demands – lead to bargaining impasse. We find, further, that unbiased judges side with the losers in the first stage; they believe that it is fair for them to be compensated in the second stage. Indeed, this is true, albeit to a lesser extent, even if the winner and loser had not directly interacted with one another – i.e., if their history is not shared.

The technology bias in entrepreneur-investor negotiations

Entrepreneur-investor negotiations are pivotal for ventures in need of funding. However, to date, little is known about the dynamics of these negotiations. We investigate a critical feature of this phenomenon by examining the role of technology, via cognitive heuristics, in shaping entrepreneur and investor perceptions and subsequent negotiation outcomes. In a controlled laboratory setting, we simulate 103 negotiations between entrepreneurs and investors. We hypothesize and find that there is a pervasive technology bias that influences the perceptions of both parties of the negotiation and, consequently, negotiation outcomes. Our findings offer unique insights into the relationships of technology, cognitive heuristics, and negotiations. We discuss the implications for both practitioners and theoreticians in the areas of technology, decision making, negotiation, and entrepreneurial financing.

Geriatric communication skills training: Shared decision making and care planning for the older cancer patient and the caregiver.

80 Background: Medical decision-making is the process of shared understanding of a patient’s personal values and subsequent negotiation to reach a treatment decision. Discussing options and engaging patients in decision-making remains a challenge for many clinicians. The challenge is greater when treating older patients, who may be cognitively impaired, and may have family members or caregivers playing significant roles in their care. The geriatric communication skills training (CST) guides clinicians in effectively communicating with older cancer patients and their caregivers around pivotal cancer care decisions. Methods: A multidisciplinary team from a Comprehensive Cancer Center collaborated on the development of a one-day training program, consisting of three geriatric specific CST modules: Geriatrics 101, Cognitive Syndromes and Shared Decision Making. Each module included a brief didactic (30 min) with exemplary videos, followed by experiential role play (90 min) with standardized patients (SP), co-led by multi-disciplinary facilitators. These sessions were video recorded to enable reflective learning, group discussion, and feedback. We examined preliminary efficacy of the intervention on multiple outcomes, including participant course evaluations, self-efficacy and coded SP assessments. Results: 28 clinicians, including mental health professionals, oncologists, family practitioners, physician assistants, nurse practitioners, and social workers participated in the training. All participants reported strong satisfaction results with the workshop. Self-efficacy ratings increased significantly across all three modules, t(21) = -4.58, p < .001 between pre-training (M = 3.39, SD = .66) and post-training (M = 4.13, SD = .59). In SP assessments, participants also demonstrated significant uptake of agenda setting skills and increased responsiveness to caregiver concerns from pre to post training. Conclusions: The geriatric CST program was well received and demonstrated improvements in knowledge. Interdisciplinary training groups present for excellent case discussion and modeling opportunities for a variety of communication challenges.

Think twice before using door-in-the-face tactics in repeated negotiation

PurposeThe purpose of this paper is to examine the detrimental effects of the door-in-the-face (DITF) tactic in repeated negotiation. A more complete understanding of its negative consequences is essential to make an informed decision about its use.Design/methodology/approachThis paper is the product of two between-subjects scenario-based negotiation experiments involving university students in Hong Kong (Study 1) and professionals in the UK with negotiation experience (Study 2).FindingsBoth the studies herein showed that detecting opponents using this tactic reduced the degree to which negotiators found their counterparts trustworthy. It also increased the likelihood of negotiators switching to an alternative partner in a collaborative project. This relationship is mediated by perceived trustworthiness. Negotiators who had detected opponents’ use of DITF made higher offers and obtained better outcomes in a subsequent negotiation. These findings indicate that negotiators who benefitted from DITF considered its use ethical, while those who suffered because of its use by others found it unethical.Practical implicationsBefore using DITF, users should be wary of the likelihood they and their counterpart will negotiate again and/or will collaborate in a future project.Originality/valueThis paper presents a new perspective from which the use of DITF may backfire in a subsequent negotiation, in terms of both objective and subjective outcomes. This is, to the best of the authors’ knowledge, the first paper to address how user and victim judge the ethicality of DITF tactics. The findings offer a building block for future research on other compliance techniques in repeated negotiations.

The dark side of subjective value in sequential negotiations: The mediating role of pride and anger.

Scholars who study negotiation increasingly recognize the importance of social context, seeing negotiations not merely as 1-shot interactions but as influenced by what came before. Under this longitudinal conceptualization of negotiation, a number of recent studies demonstrate that social psychological outcomes from prior negotiations are positively related to economic performance in subsequent negotiations when negotiating repeatedly with the same counterpart. In this report, we investigate a counterexample in the context of "sequential negotiations," which we define as multiple negotiation sessions that occur within a short time frame but facing different counterparts in each session. We theorize, in sequential negotiations, that subjective value from 1 negotiation should be negatively related to objective outcomes in a subsequent negotiation because of spillover effects of incidental anger and pride. We test this model in 2 studies: a multiround lab study with a student sample and a longitudinal field study with employees negotiating as part of their jobs. Results from both studies support the hypothesized negative relationship between subjective value from an initial negotiation and the objective outcome from a subsequent negotiation with a different counterpart. The mediating role of pride is supported partially in Study 1 and fully in Study 2, whereas the mediating role of anger is not supported in either study. We discuss implications for negotiation theory and practice. (PsycINFO Database Record

Benefit Assessment and Price Negotiation Under AMNOG: Calculable Process or Unfair Poker Game?

Ever since the introduction of the Market Restructuring Act, the evaluation and price negotiations of drugs have been controversial. While the Federal Joint Committee considers that the process is transparent and in accordance with clear evidence-based criteria, representatives of pharmaceutical companies are particularly critical of the fact that the central association of statutory health insurance is involved in both the determination of added therapeutic benefit of drugs as well as in the subsequent price negotiation. In this study, we investigate these 2 contradictory assessments empirically. For this purpose, we model the benefit assessment and price negotiation processes under AMNOG and analyze their relationship. We show that the number of patients in the target population, and the annual cost of therapy for the appropriate comparator therapy have a negative influence on the determination of the added benefit of the new therapy. The added value itself has a positive (negative) effect on the mark-up for the appropriate comparator therapy (price discount), while the annual treatment costs of the new therapy (which appropriate comparator therapy) have a positive (negative) influence. We find clues, but no significant evidence for the hypothesis that the decisions on the added value of new medicines and the subsequent price negotiations are interdependent.

한·중 FTA 전자상거래 협정의 주요쟁점과 활용과제

중국은 세계에서 가장 큰 전자상거래 시장으로서 중국 온라인 소매시장은 미국보다 약 40% 크며, 양국은 전세계 전자상거래 시장의 55% 이상을 차지하고 있다. 한 중 FTA는 한중 양국의 상품, 서비스의 전자상거래 확대와 국가간 전자상거래 활동을 촉진시킬 것이다. 한국산 소비재는 기술과 품질 측면에서 중국시장에서 경쟁우위를 가지고 있기 때문에 FTA 혜택을 향유할 수 있다. 본 연구는 한 중 FTA 전자상거래 협정문의 주요쟁점을 검토하고 이를 바탕으로 한국 상품의 전자상거래 수출확대를 위한 활용과제에 대해 문헌연구를 중심으로 살펴보았다. 이러한 연구결과를 바탕으로 다음과 같은 시사점을 제시하고자 한다. 한국 상품의 전자상거래 수출확대를 위해서는 한 중 FTA 전자상거래 협정의 후속협상에 대한 준비와 전자적 전송물의 분류에 대한 대비를 하여야 한다. 그리고 전자인증과 전자서명에 있어 양국의 상호인정이 필요하며, 전자상거래 분쟁해결을 위한 제도의 마련과 한국 상품의 전자상거래 수출확대를 위한 전략의 수립 등이 필요하다. China is the largest e-commerce market in the world. The Chinese online retail market is almost 40% larger than the US, and together these markets account for more than 55% of worldwide e-commerce. The Korea China FTA is likely to facilitate e-commerce activity between the two countries, as well as trade in the goods and services that enable e-commerce. Korean consumer goods can enjoy the benefits of the FTA because it has a competitive advantage in the Chinese market in terms of technology and quality. The purpose of this study is to examine legal issues of e-commerce chapters of the Korea China FTA and policy implications. Results of the study show that several implications based on the export vitalization of cross-border e-commerce of Korean products are offered. The Korean government needs to do the following: prepare for the subsequent negotiation of the e-commerce agreement, prepare for the classification issue of electronic transmissions, require mutual recognition of electronic authentication and electronic signatures, prepare for e-commerce dispute settlement mechanism and establish of strategies for the export vitalization of e-commerce.

Spectacular Bodies: The Swimsuit, Sexuality and Hollywood

This article explores the mutually beneficial relationship between the American swimsuit and film industries during the first three decades of the twentieth century. Three examples will be used: Fatty and the Bathing Beauties from 1913 (prior to regulated film content), Footlight Parade from 1933 (when limited self-regulation had been put in place, but was not yet rigorously enforced) and the Tarzan film franchise (which spans both the second period and a later, third period of actual implementation and subsequent negotiation). Using these examples, the paper will consider several of the popular associations attached to the swimmer and the swimsuit. It will discuss the ways in which Hollywood utilised the swimsuit, the swimmer and swimming in both its films and its promotional materials and will demonstrate how through the sporting associations of both the garment and sports stars, film producers negotiated the processes of censorship and self-regulation while allowing the continued use of semi-naked and eroticised bodies, to their own profit and to that of the increasingly fashionable swimwear industry.

The Viral Spread of Incivility

In three studies we found that incivility spreads from perpetrators through victims to uninvolved third parties. Study 1 showed that when elementary school teachers were uncivil, teachers in the school tended to also be uncivil, and as a result the students exhibited violent behavior. Study 2 replicates these results by showing that negotiating with an uncivil partner affected individuals’ behaviors in subsequent negotiations. Specifically, those who negotiate with an uncivil partner in a previous negotiation tended to behave more rudely towards the partner in a subsequent negotiation and these behaviors had negative effects on the next partner’s emotions, cognitions, and behaviors. Study 3 replicated these result in a laboratory setting in which incivility was experimentally manipulated. The results also showed that the ambiguity of the third party behavior moderated the relationship between perpetrator incivility and victims behavior towards the third party. Overall the results show that individuals who experience incivility behave more rudely themselves in future interactions. Moreover, responses to incivility increase in severity ultimately resulting in consequences of far greater impact than the original incivility.

'But I Thought We Were All on the Same Page' - Homogeneity Perceptions and Egocentric Bias in Negotiation Teams and Their Consequences for Intrateam Information Elaboration and Interteam Integrative Bargaining

A frequent problem in negotiation teams is that members insufficiently elaborate and integrate different interests within the team. Building on theory and findings of diversity research, the present research proposes that perceived homogeneity within negotiation teams can explain their problem with interest elaboration and integration. Illuminating the path from perceived homogeneity to reduced information elaboration, the current research assumes homogeneity perceptions to induce a similarity mindset. This sensitivity to similarities increases individuals’ egocentric bias and thus their projection of own mental contents to other individuals. Therefore negotiation team members with homogeneity perceptions should assume their team colleagues to share their own interests and thus consider information exchange about team members’ interests as being less important. The resulting low information elaboration is expected to impair outcome quality in a subsequent representative negotiation as single team members cannot represent their whole team’s interests appropriately. Three studies provide first evidence for these predictions.

The Evolution of the Climate Change Regime: Beyond a North-South Divide?

This research primarily analyses relevant climate bargaining dynamics that have been informed by a North-South impasse. This working paper argues that the first stage of negotiations for a climate convention indeed witnessed a North-South divide which became institutionalized in the Framework Convention on Climate Change. However, in subsequent negotiation rounds the key loci of bargaining struggles was centered between developed countries, in which relevant North-South cooperation dynamics were also present. Finally, this paper assesses the unfinished post-Kyoto bargaining process in which two trends are already being observed: both the emergence of a new geopolitics between the United States and major developing countries, and a fragmentation process within the South, in which the Copenhagen Accord itself has begun to institutionalize such fragmentation.

Establishing composite SLAs through concurrent QoS negotiation with surplus redistribution

SUMMARYThe end‐to‐end QoS negotiation for service level agreement establishment for composite services involves compound multi‐party negotiations in which the composite service provider concurrently negotiates with multiple candidates for each atomic service, selecting the one that best satisfies the atomic service QoS preferences while ensuring that the end‐to‐end QoS requirements are also fulfilled. In order to be able to negotiate with potential candidates, it is necessary to derive the atomic utility boundaries from the global utility boundary. Additionally, there has to be a mechanism for updating these boundaries in subsequent negotiation rounds based on the individual negotiation outcomes. In this paper, we propose an algorithm for the decomposition of global utility boundary into atomic service utility boundaries, and the surplus redistribution from successful negotiation outcomes among the remaining negotiations. The proposed mechanism is a practical approach to efficiently coordinate concurrent service negotiations within complex workflows, enabling the iterative and interactive adjustment of the negotiation boundaries for each atomic service in a composition based on the performance of other atomic negotiations. We demonstrate the feasibility of our approach by evaluating it with some popular negotiation strategies using the Specialized Property Search Scenario. Copyright © 2011 John Wiley & Sons, Ltd.

When Does Taking a Break Help in Negotiations? The Influence of Breaks and Social Motivation on Negotiation Processes and Outcomes

Most negotiations are interrupted from time to time to reflect on the negotiation or to do other pressing tasks. This study investigated how these breaks and the thoughts during these breaks influence subsequent negotiation behavior. Prosocially motivated dyads, with a tendency to think cooperatively, and proself-motivated dyads, with a tendency to think competitively, engaged in a negotiation in which there was a 3-min break. During this break, either they could reflect upon the negotiation or they did a distraction task. After the reflect break, but not after the distract break, prosocial dyads displayed more concern for other, engaged in more cooperative negotiation, and reached more agreements than proself dyads. We conclude that breaks are constructive if, and only if, negotiators reflect on their negotiation when having a prosocial orientation.

Vertical Coordination Through Renegotiation

This paper analyzes the strategic use of bilateral supply contracts in sequential negotiations between one manufacturer and two differentiated retailers. Allowing for general contracts and retail bargaining power, I show that the first contracting parties have incentives to manipulate their contract to shift rent from the second contracting retailer and these incentives distort the industry profit away from the fully integrated monopoly outcome. To avoid such distortion, the first contracting parties may prefer to sign a contract which has no commitment power and can be renegotiated from scratch should the manufacturer fail in its subsequent negotiation with the second retailer. Renegotiation from scratch induces the first contracting parties to implement the monopoly prices and might enable them to capture the maximized industry profit. A slotting fee, an up-front fee paid by the manufacturer to the first retailer, and a menu of tariff-quantity pairs are sufficient contracts to implement the monopoly outcome. These results do not depend on the type of retail competition, the level of differentiation between the retailers, the order of sequential negotiations, the level of asymmetry between the retailers in terms of their bargaining power vis-a-vis the manufacturer or their profitability in exclusive dealing.