A comfy place? A glass of wine? Disentangling the impact of components of social interactions on negotiation

Abstract: Prior social interaction facilitates negotiation; therefore, negotiators often organize informal gatherings before negotiation takes place. These may happen in fancy places; in many countries, they may involve alcohol consumption. Through a lab-in-the-field controlled experiment (to be run as soon as COVID restrictions are lifted), we aim to distinguish the impact (1) the time invested in rapport-building, (2) comfortable conditions to mingle, then negotiate, (3) the fact of offering alcohol and (4) alcohol consumption. We want to establish the impact of these different treatments on the substantive outcome of negotiation (value creation and/or distribution) but also on relationship variables, notably willingness to negotiate again in the future. Since social interactions create costs for negotiators (costs that may be supported by the community through professional expense deductions), we aim to ascertain whether such costs lead to benefits at the negotiation table.

Keywords: Wine - Negotiation - Social interactions

Topic: NEG   |   Format: Extended Abstract