Substantial evidence exists that negotiators frequently fail to attain readily available and mutually beneficial outcomes. This paper provides a preliminary model of why these failures exist. We assume that negotiators are decision makers, and that their errors derive from cognitive processes ignored by utility-maximization theories. We focus on one part of the model: the systematic tendency to ignore the cognitions of opponent negotiators.Empirical evidence clarifying negotiators' cognitive processes is generated using verbal protocol techniques in a controlled negotiation task. The results show that subjects simplify the negotiation task, in part by ignoring contingencies introduced by the knowledge possessed by their opponents. The discussion focuses on how subjects simplify the task and how the decision making perspective helps redirect the negotiation literature.
Page 2Two or more interdependent parties are negotiating if they are making joint decisions and do not have identical preferences across decision alternatives (Pruitt, 1981(Pruitt, , 1983 Kelley & Thibaut. 1980). Despite the obvious prevalence and importance of negotiation, substantial evidence exists that negotiators frequently fail to attain readily available and mutually beneficial outcomes, and that these inefficiencies in the negotiation process reduce society's available resources, productivity, and creative opportunities, and increase society's conflict and self-destructiveness (Pruitt and Rubin, 1986;Raiffa, 1982). This paper provides a preliminary model of why these failures exist, based on the cognitive processes of negotiators. We focus on one part of the model: the systematic tendency to ignore the cognitions of opponent negotiators.Empirical evidence clarifying negotiator's cognitive processes is generated from verbal protocol methods used in the study of decision making.
Negotiator RationalityNegotiation research has assumed the rationality of both outcomes and process . By rationality of outcomes we mean that an agreement will be reached if and only if there is a zone of agreement that both parties prefer over reaching impasse, and the agreement will be such that there is no alternative joint resolution available that would be preferable to both parties (Zuethen, 1930; isash, 1950;Cross, 1969;Farber, 1980Farber, , 1981.In contrast, ample empirical evidence has shown that individuals often fail to reach an agreement despite a positive zone of agreement, and often reach inefficient outcomes (cf. Pruitt and Rubin, 1986).By rationality of process we mean that negotiation researchers have has not directly assessed cognitions.Samuelson and Bazerman (1985) found that negotiators under an information disadvantage deviate from normative behavior by ignoring the information available to the opponent and, consequently, fall prey to the "winner's curse" -they consistently (and voluntarily) enter into Page 8 loss-making purchases.In one of their studies, subjects are given an opportunity to make one bid (take it or leave it) for the acqu...