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The Negotiation Matching Process: Relationships and Partner Selection
Tenbrunsel1, Wade-Benzoni, Moag
1College of Business Administration, University of Notre Dame
Organizational Behavior and Human Decision Processes
|December 2, 1999
Summary
Relationships negatively impact negotiation outcomes. Removing relationship influence in partner selection leads to more optimal agreements and increased market efficiency.
Area of Science:
- Social Psychology
- Behavioral Economics
- Game Theory
Background:
- Partner selection is a critical negotiation component.
- The influence of pre-existing relationships on partner selection is not fully understood.
- Economic and social factors often interplay in market matching processes.
Purpose of the Study:
- To investigate the impact of relationships on partner selection in negotiations.
- To compare economic outcomes in matching markets with and without relationship influence.
- To identify social factors influencing partner selection and their effect on profitability.
Main Methods:
- Three studies employing simulated matching market experiments.
- Analysis of simulated naturally occurring market selection processes.
- Repeated trial experimental simulations to assess negotiator power dynamics.
Main Results:
- Excluding relationships from partner selection increases economically optimal agreements and market surplus.
- Social factors significantly influence partner selection decisions.
- Negotiator power moderates the negative economic impact of relationships.
Conclusions:
- Relationships can hinder efficient partner selection and reduce overall economic gains.
- Understanding the interplay of social and economic factors is crucial for optimizing negotiation outcomes.
- The structure of market selection processes significantly affects agreement quality and profitability.