Dynamic Valuation: Preference Changes in the Context of Face-to-Face Negotiation

MIT Sloan Working Paper No. 4253-02; Harvard PON Working Paper

Journal of Experimental Social Psychology, Vol. 40, pp. 142-151, 2004

35 Pages Posted: 31 May 2002

See all articles by Jared R. Curhan

Jared R. Curhan

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Margaret Neale

Stanford Graduate School of Business

Lee D. Ross

Stanford University - Psychology

Abstract

This study examines the dynamics of preference change in the context of face-to-face negotiation. Participants playing the role of "student" or "financial aid officer" exchanged proposals regarding the terms of a student loan. In accord with dissonance theory, participants increased their liking for proposals they offered and/or ultimately accepted. The reactance theory prediction that participants would devalue proposals received from their counterparts was confirmed for loan officers, but not for students. A pair of experimental manipulations involving pre-rating of proposals and the opportunity for participants to engage in brief discussions prior to the initial exchange of offers mediated these effects and influenced subsequent rates of agreement and post-settlement satisfaction. Underlying attributional mechanisms and implications of these findings for facilitating agreements are discussed.

Keywords: Dynamic Valuation, Negotiation, Conflict Resolution, Reactive Devaluation, Reactance, Dissonance, Self-perception, Attribution Theory, Preference Change

Suggested Citation

Curhan, Jared R. and Neale, Margaret A. and Ross, Lee D., Dynamic Valuation: Preference Changes in the Context of Face-to-Face Negotiation. MIT Sloan Working Paper No. 4253-02; Harvard PON Working Paper; Journal of Experimental Social Psychology, Vol. 40, pp. 142-151, 2004. Available at SSRN: https://ssrn.com/abstract=311527 or http://dx.doi.org/10.2139/ssrn.311527

Jared R. Curhan (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

50 Memorial Drive, E52-554
Cambridge, MA 02142
United States
617-253-5219 (Phone)
617-253-2660 (Fax)

Margaret A. Neale

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States
415-725-7979 (Fax)

Lee D. Ross

Stanford University - Psychology ( email )

BLDG 420-RM 380
Mail Code: 2130
Stanford, CA 94305
United States
(650) 725-2447 (Phone)

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