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Positive affect and decision frame in negotiation

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Abstract

This study examined decision frame (“gain” vs. “loss”) and negotiator affect (positive vs. control) in a simulated bilateral negotiation where negotiators dealt with a programmed opponent and made offers and counteroffers on three issues that differed in value. Direct comparisons between the gain and loss frame conditions, in the control-affect condition, revealed a replication of the standard frame effect: a loss frame produced fewer concessions than a gain frame. However, an interaction effect indicated that the frame effect reversed in the positive affect condition: under positive affect, a loss frame produced greater concessions than a gain frame. In addition, the data indicated a replication of earlier work showing that positive affect can lead to more integrative agreements in negotiation. The results suggest that positive affect can influence location of a reference point in evaluating prospective outcomes; one implication is that prospect theory can be useful for understanding the effects of affect in bilateral negotiation.

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Authors and Affiliations

  1. Department of Management & Organization, Marshall School of Business, University of Southern California, Los Angeles, CA, 90089-0808, USA

    Peter J. Carnevale

  2. University of Southern California, Los Angeles, CA, USA

    Peter J. Carnevale

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  1. Peter J. Carnevale
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Correspondence to Peter J. Carnevale.

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Carnevale, P.J. Positive affect and decision frame in negotiation. Group Decis Negot 17, 51–63 (2008). https://doi.org/10.1007/s10726-007-9090-x

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