The polarizing effect of arousal on negotiation

Area of Science:

• Psychology
• Behavioral Economics
• Social Psychology

Background:

• Conventional wisdom suggests minimizing physiological arousal in negotiations due to its negative effects.
• Prior research on misattribution of arousal indicates potential for outcome polarization, either positive or negative.

Purpose of the Study:

• To investigate the impact of physiological arousal on negotiation outcomes.
• To examine how prior attitudes influence the effect of arousal on negotiation success.
• To understand the role of affect construal in mediating arousal's impact.

Main Methods:

• Two experiments were conducted to manipulate physiological arousal.
• Subjective and objective negotiation outcomes were measured.
• Participants' prior attitudes toward negotiation were assessed.

Main Results:

• Results support the polarization effect of physiological arousal on negotiation outcomes.
• Arousal detrimentally affected outcomes for participants with negative prior attitudes.
• Arousal beneficially affected outcomes for participants with positive prior attitudes.

Conclusions:

• The construal of arousal as negative or positive affect explains its differential impact based on prior attitudes.
• Findings highlight the critical role of the perceiver's attitude in negotiation dynamics.
• Implications extend to negotiation strategies and research on misattribution of arousal.