The Shadow of The Past: Unveiled Undesirable Precedents Harm (objective and Subjective) Negotiation Outcomes

Authors:

Abstract: This research examines the impact of unveiled undesirable negotiation precedents on subsequent negotiation outcomes. Challenging the idea that such precedents serve as beneficial learning experiences, we found that public knowledge of these precedents negatively affects both objective and subjective outcomes for focal negotiators. Across five studies (N = 1,445), we demonstrated that when counterparts are aware of a past undesirable precedent, the focal negotiator tends to secure less favorable terms. Moreover, counterparts develop more negative perceptions of the focal negotiator. Our methodology included vignette studies varying the knowledge of precedents and dyadic face-to-face and online negotiations. The findings consistently showed that unveiled precedents led to worse negotiated deals (Study 1–5), more extended negotiations (Study 4 and5), altered reservation values and aspirations (Study 3–5), and reduced subjective value (Study 4 and 5). The research contributes to negotiation literature by highlighting the constraints imposed by known undesirable negotiation precedents.

Track: NEG

Keywords: Precedent, Undesirable precedent, Sequential negotiation