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  • Book
  • © 2007

Preferences in Negotiations

The Attachment Effect

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Part of the book series: Lecture Notes in Economics and Mathematical Systems (LNE, volume 595)

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eBook USD 109.00
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  • ISBN: 978-3-540-72338-7
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Table of contents (6 chapters)

  1. Front Matter

    Pages I-XIV
  2. Introduction

    Pages 1-14
  3. Internet Experiment

    Pages 111-139
  4. Laboratory Experiment

    Pages 141-223
  5. Back Matter

    Pages 245-270

About this book

Negotiations are ubiquitous in business, politics, and private life. In many cases their outcome is of great importance. Yet, negotiators frequently act irrationally and fail to reach mutually beneficial agreements. Cognitive biases like overconfidence, egocentrism, and the mythical fixed pie illusion oftentimes foreclose profitable results. A further cognitive bias is the attachment effect: Parties are influenced by their subjective expectations formed on account of the exchange of offers, they form reference points, and loss aversion potentially leads to a change of preferences when expectations change.

This book presents a motivation, formalization, and substantiation of the attachment effect. Thereby, preferences and behavior are approached from a microeconomic and a psychological perspective. Two experiments show clear evidence for a systematic bias. The results can be used for prescriptive advice to negotiators: either for debiasing or to systematically affect the counterparty.

Keywords

  • Behavioral Economics
  • Experimental Economics
  • Motivation
  • Negotiations
  • Preferences
  • Prospect Theory
  • behavior

Authors and Affiliations

  • Karlsruhe Institute of Technology, Universität Karlsruhe (TH) Institute of Information Systems and Management, Karlsruhe, Germany

    Henner Gimpel

Bibliographic Information

Buying options

eBook USD 109.00
Price excludes VAT (USA)
  • ISBN: 978-3-540-72338-7
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book USD 149.00
Price excludes VAT (USA)