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Negotiators' bargaining histories and their effects on future negotiation performance.

Kathleen M O'connor¹, Josh A Arnold, Ethan R Burris

¹Johnson Graduate School of Management, Cornell University, Ithaca, NY 14853, USA. kmo8@cornell.edu

The Journal of Applied Psychology

|March 17, 2005

Summary

Previous negotiation outcomes significantly impact future deal quality. Past impasses lead to worse future deals, even with new partners, highlighting the importance of bargaining history.

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Area of Science:

Behavioral Economics
Social Psychology
Negotiation Research

Background:

Negotiation outcomes are often studied in isolation.
The influence of prior negotiation experiences on subsequent bargaining is not fully understood.

Purpose of the Study:

To investigate how previous negotiation experiences affect the quality of subsequent deals.
To determine if past negotiation success or failure predicts future negotiation performance.

Main Methods:

Two studies were conducted involving negotiators.
Participants' prior negotiation outcomes (impasse vs. agreement) were compared to their subsequent negotiation performance.
The effect of changing negotiation partners was examined.

Main Results:

Negotiators experiencing a prior impasse were more likely to reach an impasse or a low-value deal in their next negotiation.
This effect persisted even when negotiators switched partners for the second negotiation.
Past bargaining performance strongly predicted future negotiation behavior.

Conclusions:

Bargaining histories are significant predictors of negotiation behavior.
Negotiations should be viewed as interconnected exchanges rather than isolated events.
Understanding past negotiation experiences is crucial for improving future deal-making.