Skip to main content
Log in

The Accuracy of Post-Negotiation Estimates of the Other Negotiator's Payoff

  • Published:
Group Decision and Negotiation Aims and scope Submit manuscript

Abstract

This paper describes two empirical studies of interpersonal understanding in negotiations. In the first study, the accuracy of post-negotiation estimates of the other negotiator's payoff was assessed after a role-playing simulation. Only a minority of participants exhibited evidence of the fixed pie bias, in which negotiators view all negotiations as distributive, fixed-sum situations. Participants' estimates of the other negotiator's payoff were generally better fit by the equal payoffs model, which presumes that participants believe the other negotiator's payoff is the same as one's own. This held true for both distributive task structures in which the fixed-pie view is descriptively appropriate and integrative negotiation task structures in which the fixed-pied view is inaccurate. The results did not support the hypothesis that superior understanding about the other negotiator's interests helps negotiators to achieve better outcomes for themselves; the correlation between predictive accuracy and the value of participants' own payoffs was generally low.

A second study was conducted to test the hypothesis that negotiators typically see negotiations as fundamentally a distributive, fixed pie problem, but believe their own negotiated agreements yield roughly equal payoffs to both negotiators. The results supported this hypothesis. In this second study, participants estimated the other negotiator's payoffs over a sample of hypothetical contracts. The payoff schedule estimation procedure, which has been widely used in previous research, was not used in the present research because it was shown to have serious methodological, conceptual, and procedural problems in the context of the present study.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Bazerman, M. H. (1983). “Negotiator Judgment: A Critical Look at the Rationality Assumption,” American Behavioral Scientist 27, 211–228.

    Google Scholar 

  • Bazerman, M. H. and J. S. Carroll. (1987). “Negotiator Cognition,” Research in Organization Behavior 9, 247–288.

    Google Scholar 

  • Bazerman, M. H., T. Magliozzi, and M. A. Neale. (1985). “Integrative Bargaining in a Competitive Market,” Organizational Behavior and Human Performance 34, 294–313.

    Google Scholar 

  • Bazerman, M. H. and M. A. Neale. (1983). “Heuristics in Negotiation: Limitations to Effective Dispute Resolution,” in M. H. Bazerman and R. J. Lewicki (eds.), Negotiating in Organizations. Beverly Hills: Sage.

    Google Scholar 

  • Brehmer, B. (1976). “Social Judgment Theory and the Analysis of Interpersonal Conflict,” Psychological Bulletin 83, 985–1003.

    Google Scholar 

  • Darling, T. A. and J. L. Mumpower. (1992). “Simulating Process and Outcome for Two-Party Contract Negotiations,” Control and Cybernetics 21, 1–34.

    Google Scholar 

  • Harsanyi, J. C. (1962). “Bargaining in Ignorance of the Opponent's Utility Function,” Conflict Resolution 6, 29–38.

    Google Scholar 

  • Lax, D. A. and J. K. Sebenius. (1986). The Manager as Negotiator. New York: Free Press.

    Google Scholar 

  • Mumpower, J. L. (1991). “The Judgment Policies of Negotiators and the Structure of Negotiations,” Management Science 37, 1304–1324.

    Google Scholar 

  • Mumpower, J. L. (2001). “Brunswikian Research on Social Perception, Interpersonal Learning, and Negotiation,” in K. R. Hammond and T. R. Stewart (eds.), The Essential Brunswik. New York: Oxford University Press.

    Google Scholar 

  • Mumpower, J. L. and J. Rohrbaugh. (1996). “Negotiation and Design: Supporting Resource Allocation Decisions through Analytical Mediation,” Group Decision and Negotiation 5, 385–410.

    Article  Google Scholar 

  • Neale, M. A., V. L. Huber, and G. B. Northcraft. (1987). “The Framing of Negotiations: Contextual Versus Task Frames,” Organizational Behavior and Human Decision Processes 39, 228–241.

    Article  Google Scholar 

  • Neale, M. A. and G. B. Northcraft. (1986). “Experts, Amateurs, and Refrigerators: Comparing Expert and Amateur Negotiators in a Novel Task,” Organizational Behavior and Human Decision Processes 38, 305–317.

    Article  Google Scholar 

  • Pruitt, D. G. and J. Z. Rubin. (1986). Social Conflict: Escalation, Stalemate, and Settlement. New York: Random House.

    Google Scholar 

  • Raiffa, H. (1982). The Art and Science of Negotiation. Cambridge: Belknap/Harvard University Press.

    Google Scholar 

  • Thompson, L. and T. de Harpport. (1994). “Social Judgment, Feedback, and Interpersonal Learning in Negotiation,” Organizational Behavior and Human Decision Performance 58, 327–345.

    Google Scholar 

  • Thompson, L. and R. Hastie. (1990a). “Judgment Tasks and Biases in Negotiation,” Research on Negotiation in Organization 2, 31–54.

    Google Scholar 

  • Thompson, L. and R. Hastie. (1990b). “Social Perception in Negotiation,” Organizational Behavior and Human Decision Performance 47, 98–123.

    Google Scholar 

  • Walton, R. E. and R. B. McKersie. (1965). A Behavioral Theory of Labor Negotiation. New York: McGraw-Hill.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Mumpower, J.L., Sheffield, J., Darling, T.A. et al. The Accuracy of Post-Negotiation Estimates of the Other Negotiator's Payoff. Group Decision and Negotiation 13, 259–290 (2004). https://doi.org/10.1023/B:GRUP.0000031089.91654.26

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/B:GRUP.0000031089.91654.26

Navigation