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Emotions in Bargaining

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Abstract

The current chapter provides an overview of theory and research on the effects of emotions in bargaining. Three different ways in which emotions shape negotiations will be discussed. The first part focuses on how the experience of one's own emotions influences the bargaining process (i.e., the intrapersonal effects). The second part reviews how emotional expressions influence the other party in negotiations (i.e., the interpersonal effects). The last part will focus on how emotions influence deceptive strategies in negotiations, and how negotiators use their emotions to deceive their opponents. Finally, suggestions for future research and practical implications are discussed.

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We tested the hypothesis that the positive affect of powerful negotiators shapes the quality of negotiation processes and outcomes more than the positive affect of less powerful negotiators. Findings from two studies supported the hypothesis: powerful individuals' trait positive affect was the best predictor of negotiators' trust for each other and of whether they reached integrative outcomes. Positive affect predicted joint gains above and beyond negotiators' trait cooperativeness and communicativeness. However, positive affect was unrelated to distributive outcomes; thus, there were no observed disadvantages of being positively affective.
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Social decisions are heavily influenced by emotion. For decades, the dominant research paradigm has been characterized by a focus on the decision maker's own positive or negative mood. We argue that a full understanding of the role of emotion in social decision making requires a complementary focus on interpersonal effects (i.e., the effects of one individual's emotions on the other's behavior); a focus on discrete emotions rather than general mood states; and a distinction between cooperative and competitive settings. To advance insight into these issues, we present the Emotions as Social Information (EASI) model. The model is grounded in two basic assumptions, namely that individuals use others' emotions to make sense of ambiguous situations, and that the effects of others' emotions and the processes that drive them depend critically on the cooperative or competitive nature of the situation. A review of recent research supports our analysis. We demonstrate that the interpersonal effects of emotions are pervasive and can be better understood in terms of the unique social functions of each emotion than in terms of valence. Effects in cooperative settings are best explained in terms of affective reactions (i.e., emotional contagion, affect infusion, and mood management), whereas effects in competitive contexts are better understood in terms of the strategic inferences individuals draw from other's emotions. We conclude by discussing the implications of our model and highlighting avenues for future research.
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The present study investigated the influence of positive affect and visual access on the process and outcome of negotiation in an integrative bargaining task. Visual access was crossed with positive affect in a 2 × 2 design. The results supported the hypotheses that positive affect would reduce the use of contentious tactics and would increase joint benefit, just as had been found for the presence of a barrier that eliminated visual access to the other negotiator (S. Lewis & W. Fry, 1977, Organizational Behavior and Human Performance20, 75–92). This latter finding was also replicated. Only when bargainers were face to face and not in a positive state was there heavy use of contentious tactics, reduced trade-offs, and fewer integrative solutions. This means that positive affect can overcome the competitive processes and poor outcomes normally observed in face-to-face integrative bargaining. The results are discussed in terms of the cognitive dynamics of negotiation.
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We examined whether the discrete, other-directed emotions of anger and compassion exert a greater influence on negotiations than mood. Drawing on cognitive appraisal theories of emotion, we specifically tested whether negotiators who felt high anger and low compassion for each other would (1) have less desire to work with each other in the future, (2) achieve fewer joint gains, and (3) successfully claim more value for themselves than negotiators who had more positive emotional regard for the other party. The results of a mixed-motive simulation experiment confirmed the first two predictions but not the last. The results confirmed that anger and compassion exerted a greater influence than mood. These findings indicate why prior advice stemming from the conflict and negotiation literature for managing anger has been counterproductive and suggest contrasting prescriptions.
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The authors examined whether individual differences in social value orientation moderate responses to other's expressions of disappointment in negotiation. The literature suggested competing hypotheses: First, prosocials are more responsive to other's disappointment because they have a greater concern for other; second, proselfs are more responsive because they see other's disappointment as a threat to their own outcomes. Results of a computer-mediated negotiation in which a simulated opponent expressed disappointment, no emotion, or anger supported the second prediction: Proselfs conceded more to a disappointed opponent than to a neutral or angry one, whereas prosocials were unaffected by the other's emotion. This effect was mediated by participants' motivation to satisfy the other's needs, which disappointment triggered more strongly in proselfs than in prosocials. Implications for theorizing on emotion, social value orientation, and negotiation are discussed.