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Strategic decision-making in negotiation: Lessons from behavioral game theory
Nir Halevy1, Linh Vu1, Valentino Emil Chai1
1Graduate School of Business, Stanford University, Stanford, CA 94305, USA.
Abstract:
Game theory provides a language and a set of tools for analyzing behavior in a wide range of strategic interactions, including negotiation. Here, we illustrate behavioral game theory's contributions to the study of negotiation, with a particular focus on the role that communication and emotion play in negotiation. We explain how researchers can use games to study various negotiation phenomena, including the effects of power, information asymmetry, and identity on negotiation processes and outcomes. The concepts, methods, and findings we review offer insights and tools that negotiation scholars and practitioners can harness to advance their understanding of negotiation.
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