Patience Is A Virtue: The Effect of Counteroffer Timing On Integrative and Distributive Negotiation Outcomes

Recent research illustrates that counteroffers can have similar, beneficial effects as first offers. However, far less is known about the conditions under which counteroffers are most effective. Like delaying first offers, we propose that delaying counteroffers also improves integrative negotiation outcomes. Specifically, delaying counteroffers may shift the negotiators’ focus away from discussing the distributive price, increases information exchange, and consequently leads to more integrative negotiation outcomes for both parties. Further, we will assess whether the type of negotiation tactic (information exchange/informing-about-competition) that will be applied by the party making the counteroffer moderates these potential effects. The proposed hypotheses will be assessed via a 2x3 experimental design, with participants negotiating in dyads via an online chat platform. Implications for practitioners in B2B negotiations will be emphasized.