Reconsider what your MBA negotiation course taught you: The possible adverse effects of high salary requests
In: Journal of vocational behavior, Band 139, S. 103803
ISSN: 1095-9084
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In: Journal of vocational behavior, Band 139, S. 103803
ISSN: 1095-9084
SSRN
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The behavioral decision-making and negotiations literature usually advocates a first-mover advantage, explained the anchoring and adjustment heuristic. Thus, buyers, who according to the social norm, tend to move second, strive to make the first offer to take advantage of this effect. On the other hand, negotiation practitioners and experts often advise the opposite, i.e., moving second. These opposite recommendations regarding first offers are termed the Practitioner-Researcher paradox. In the current article, we investigate the circumstances under which buyers would make less favorable first offers than they would receive were they to move second, focusing on low power and anxiety during negotiations. Across two studies, we manipulated negotiators' best alternative to the negotiated agreement (BATNA) and measured their anxiety. Our results show that, when facing neutral-power sellers, weak buyers who feel anxious would make inferior first offers (Studies 1 and 2). When facing low-power sellers, weak buyers would make inferior first offers across all anxiety levels (Study 2). Our findings shed light on two critical factors leading to the Practitioner-Researcher paradox: power and anxiety, and offer concrete guidelines to buyers who find themselves at low power and highly anxious during negotiations.
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In: Group decision and negotiation, Band 28, Heft 1, S. 43-62
ISSN: 1572-9907
In: Maaravi , Y & Levy , A 2017 , ' When your anchor sinks your boat : Information asymmetry in distributive negotiations and the disadvantage of making the first offer ' , Judgment and decision making , vol. 12 , no. 5 , pp. 420-429 . ; ISSN:1930-2975
The literature on behavioral decision-making and negotiations to date usually advocates first-mover advantage in distributive negotiations, and bases this preference on the anchoring heuristic. In the following paper, we suggest that the preference for moving first vs. moving second in negotiations may not be as clear-cut as presumed, especially in situations characterized by information asymmetry between negotiating counterparts. In Study 1, we examined people's initiation preferences and found that unless taught otherwise, people intuitively often prefer to move second. In Studies 2-4, we experimentally tested the suggested advantage of moving second, and demonstrated that in information-asymmetry scenarios - when one party has perfect background information and the other has none - it is actually preferable for both counterparts not to give the first offer while negotiating. We discuss the implications of our findings on the field of negotiation and decision-making, and lay the groundwork for future studies examining this issue.
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