Negotiating Karma: Catalysts for Cooperative Behavior in Negotiation

30 Pages Posted: 22 May 2010

See all articles by Mara Olekalns

Mara Olekalns

University of Melbourne - Melbourne Business School

Philip Smith

University of Melbourne - Department of Psychology

Corinna Tsao

University of Melbourne

Abstract

Cooperative actions are central to a problem-solving approach in negotiation. In deciding how to approach a negotiation, individuals draw on multiple cues to assess the likelihood that the other party will reciprocate cooperative actions. Using a simulated business negotiation, we examined how two contextual variables, regulatory focus (RF) and interpersonal orientation (IO), combined with individuals’ norms of reciprocity to determine strategy choices. Drawing on negotiation and regulatory focus theory, we identified two competing models for the relationship between IO and RF: strategic fit (promotion focus, interdependent orientation or prevention focus, independent orientation) and regulatory fit (promotion focus, independent orientation or prevention focus, interdependent orientation). Our analysis showed that when RF and IO provided congruent cues (strategic fit) to negotiators, they engaged in higher levels of deal-making behaviors (offer management, offer exploration, positional information). Negotiators in strategic fit further increased their use of relationship-based influence and offer management when they had strong norms of reciprocity. Weak norms of reciprocity increased the use of influence tactics when negotiators had an independent orientation, suggesting that negotiators attempted to increase the other party’s commitment to the negotiation. Finally, for promotion focused negotiators with an interdependent orientation, weak norms of reciprocity disinhibited the use of positional information.

Suggested Citation

Olekalns, Mara and Smith, Philip L. and Tsao, Corinna, Negotiating Karma: Catalysts for Cooperative Behavior in Negotiation. IACM 23rd Annual Conference Paper. Available at SSRN: https://ssrn.com/abstract=1612867 or http://dx.doi.org/10.2139/ssrn.1612867

Mara Olekalns (Contact Author)

University of Melbourne - Melbourne Business School ( email )

200 Leicester Street
Carlton, Victoria 3053 3186
Australia
+61 3 9349 8146 (Phone)
+61 3 9349 8133 (Fax)

Philip L. Smith

University of Melbourne - Department of Psychology ( email )

School of Behavioural Science
Victoria 3010
Australia
+61 3 8344 6343 (Phone)

Corinna Tsao

University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

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