The effect of bargaining orientation and communication medium on negotiation

Abstract

A controlled experiment was conducted to examine how the use of either audio or text forms of verbal communication, and the presence or absence of visual communication impacts the form, content and outcome of negotiation in a bilateral monopoly task.As hypothesized, a cooperative bargaining orientation andlor an audio mode of communication lead to a higher joint outcome. In addition, dyads whose members each received private instructions to maximise joint outcome performed better when they could see each other whereas those who received instructions to maximise individual outcome did worse. Uncertainty regarding the logical structure of the task was reduced only via verbal communication, while equivocality regarding the bargaining orientation of the negotiating parties was reduced only via visual communication.

An empirical study of an interactive, session-oriented computerized Negotiation Support System (NSS)

“…Electronic communication will depersonalize the atmosphere, so the bargainers can focus on issues instead of personalities (DeSanctis and Gallupe 1987;Lira and Banbasat 1992;Sheffield 1992), and will deeseaiate conflict by increasing confidence in achieving a good agreement (Anson and Jelassi 1990;Foroughi and Jelassi 1989 A rudimentary theory of negotiation support systems was developed by Lim and Benbasat (1992) after the present study had been conducted. Their theoretical model considers the computer support to be made up of two components, electronic communication and a DSS, which is entirely consistent with the present study.…”

“…Another possible explanation for the high joint outcomes achieved by NSS dyads comes from both negotiation research and GSS research, which found that electronic communication provides a sort of "formality" which depersonalizes the negotiation and allows negotiators to concentrate on the content of the negotiation rather than on each other's personalities (Dennis et al 1988;DeSanctis and Gallupe 1987;Lim and Benbasat 1992;Sheffield 1992). Jones (1988) found that in high-conflict treatments, bargainers tended to ignore the computer suggestions in favor of their own solutions, even though they were often not as good as the ones suggested by the computer.…”

“…Electornic communication provides an extra channel of communication, encourages bargainers to clarify thoughts before inputting (Jarke and Jelassi 1986), reduces personality conflicts (DeSanctis and GaUup 1987;Lim and Benbasat 1992;Sheffield 1992).…”

“…A study by Sheffield (1992) has been the only previous NSS lab study to examine the effects of electronic media on negotiations. Sheffield studied the impact of four different communication media--computer conferencing (text only), decision room (text + visual), telephone (audio only), and face-to-face (audio + visual) on the form, content, and outcome of bilateral monopoly negotiations.…”

“…Furthermore, none of these implementations has featured the use of a full-featured NSS, a system which provides a DSS for each party plus an electronic communication channel, computerized group process structuring techniques, and support for analytical processing. Many pioneers in NSS research continue to express the need for more rigorous empirical research in the area of NSS to determine exactly how this new technology affects negotiator behavior and negotiation processes and outcomes (Carmel and Hemiter 1989;Cannel, Herniter, and Nunamaker 1993;Jelassi and Foroughi 1989;Jones 1988;Kersten et al 1991;Lim and Benbasat 1992;Sheffield 1992).…”