Getting to Less: When Negotiating Harms Post-Agreement Performance

https://www.sciencedirect.com/science/article/abs/pii/S0749597817307033

Posted: 20 Sep 2017 Last revised: 15 Jun 2022

See all articles by Einav Hart

Einav Hart

University of Pennsylvania - Wharton School; George Mason University - School of Business

Maurice E. Schweitzer

University of Pennsylvania - Operations & Information Management Department

Date Written: September 18, 2017

Abstract

The negotiation process can harm post-agreement motivation. For example, a homeowner might negotiate with a landscaper, but through the process of negotiating harm the landscaper’s motivation to deliver high quality service. In contrast to prior work that has assumed that negotiated agreements represent the full economic value of negotiated outcomes, we demonstrate that the act of engaging in a negotiation can itself influence post-agreement behavior in ways that change the economic value of an agreement. Across six studies, we demonstrate that negotiations can harm post-agreement motivation and productivity on both effortful and creative tasks. Specifically, we find that wage negotiations can harm post-agreement performance, even when the negotiation has integrative potential or is conducted face-to-face. The negotiation process can increase perceptions of relational conflict, and these conflict perceptions mediate the relationship between negotiation and performance. Compared to not negotiating, individuals who negotiate may secure favorable deal terms, but risk incurring affective, relational, and economic costs after the agreement. Our investigation fills a critical gap in our understanding of post-agreement behavior, and has particular relevance for negotiations that involve services. Our findings suggest that individuals should enter negotiations with caution, and we call for future work to explore not only what happens prior to an agreement, but also what happens after an agreement has been reached.

Keywords: negotiation, productivity, conflict, reciprocity

Suggested Citation

Hart, Einav and Hart, Einav and Schweitzer, Maurice E., Getting to Less: When Negotiating Harms Post-Agreement Performance (September 18, 2017). https://www.sciencedirect.com/science/article/abs/pii/S0749597817307033, Available at SSRN: https://ssrn.com/abstract=3039256 or http://dx.doi.org/10.2139/ssrn.3039256

Einav Hart (Contact Author)

University of Pennsylvania - Wharton School ( email )

Philadelphia, PA 19104
United States

HOME PAGE: http://EinavH.art

George Mason University - School of Business ( email )

Fairfax, VA 22030
United States

HOME PAGE: http://einavh.art

Maurice E. Schweitzer

University of Pennsylvania - Operations & Information Management Department ( email )

Philadelphia, PA 19104
United States
215-898-4776 (Phone)
215-898-3664 (Fax)

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