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When happiness pays in negotiation

The interpersonal effects of ‘exit option’: directed emotions

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Abstract

Previous research on the interpersonal effects of emotions in negotiation suggested that bargainers obtain higher outcomes expressing anger, when it is not directed against the counterpart as a person and it is perceived as appropriate. Instead, other studies indicated that successful negotiators express positive emotions. To reconcile this inconsistency, we propose that the direction of the effects of emotions depends on their perceived target, that is, whether the negotiators’ emotions are directed toward their opponent’s proposals or toward their own ‘exit option’. An ultimatum game scenario experiment showed that negotiators who express positive emotion rather than negative, in addition to benefits in terms of relationship fortification, received better offers when participants perceived the negotiators’ emotions directed toward their own ‘exit option’. These findings indicate that positive emotions may signal the availability of better ‘exit option’, suggesting that happiness expressions can be strategically used to maximize both material and relational outcomes.

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Acknowledgments

This research was supported by a grant from Fondazione Edoardo Garrone, Genova, Italy.

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Correspondence to Davide Pietroni.

Appendix

Appendix

1.1 Scenario

Please read carefully and try to imagine yourself in the following scenario.

Imagine that you are spending a holiday in the United States and that, visiting Las Vegas, you decide to enjoy an evening at a casino. You are walking among slots machines and roulettes when you notice a 1,000 dollar note on the floor. You promptly bend down to pick it up but when you rise up again you see a guy just in front of you complaining that he was the first to notice that note!

A casino rule states that people are allowed to keep the lost money or fiches that they find, but the fact that two people are declaring to deserve the same note generates a conflict situation that needs to be negotiated under the supervision of the casino manager.

The casino manager proposes the following solution: one opponent (the allocator) proposes a way to split the 1,000 dollars with the other (the recipient). If the recipient accepts the proposal, both will get their agreed portion of the amount. If the recipient rejects the proposal, the note will be returned to the casino and both parties would not get anything.

Although frustrated and disappointed, you and the other guy accept to adopt this splitting up method and the manager randomly assigns the role of allocator to you and the role of recipient to the other. Then, in order to avoid further frustration and conflict escalation, the manager offers to you both an ‘exit option’ to enjoy in case of no agreement, that is, in case of rejection of your proposal by the recipient.

The manager hands each of you an envelope containing a random number (from 1 to 10) of lottery tickets that each give a 10% chance of winning a 1,000 dollar prize. Then, before formulating the allocation proposal, you open your envelope and count three tickets inside of it. Knowing that the number of tickets may vary, you attentively observe your counterpart, who stands in a corner, unaware of being observed.

You clearly noted him having a reaction of anger (happiness) after opening his envelope and expecting the contents. Thereafter he approaches you asking with an irritated (content) tone of voice for your allocation proposal.

Considering that your goal (and your counterpart’s) is to obtain as many virtual dollars as possible (virtual dollars will be converted to real lottery tickets for a 100 Euro prize at the end of this experiment; 10 virtual dollars = 1 ticket), please write down now your allocation proposal to hand to the other guy.

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Pietroni, D., Van Kleef, G.A., Rubaltelli, E. et al. When happiness pays in negotiation. Mind Soc 8, 77–92 (2009). https://doi.org/10.1007/s11299-008-0047-9

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