Can Nervous Nelly Negotiate? How Anxiety Causes Negotiators to Exit Early and Make Steep Concessions
36 Pages Posted: 3 Jul 2009
Date Written: February 2010
Across three studies, we demonstrate that anxiety is both commonly associated with negotiations and harmful to negotiator performance. In our experiments, we induced either low anxiety or high anxiety. Compared to negotiators experiencing low levels of anxiety, negotiators who experience high levels of anxiety make steeper concessions and exit bargaining situations earlier. The relationship between anxiety and negotiator behavior is moderated by negotiator self-efficacy; high self-efficacy mitigates the harmful effects of anxiety.
Keywords: anxiety, negotiation, bargaining, emotion, self-efficacy
JEL Classification: D74
Suggested Citation: Suggested Citation