Toward a Process Model of First Offers and Anchoring in Negotiations

Negotiation and Conflict Management Research, Forthcoming

36 Pages Posted: 27 Jul 2022

See all articles by Wolfram Lipp

Wolfram Lipp

TUM School of Management,Technical University of Munich

Remigiusz Smolinski

Handelshochschule Leipzig (HHL) - Leipzig Graduate School of Management

Peter Kesting

Aarhus University - Department of Organization and Management

Date Written: July 15, 2022

Abstract

There is a wide consensus that first offers have a significant impact on negotiation outcomes by causing an anchoring effect. Many aspects of first offers have been analyzed, including factors that lead to making the first offer and characteristics that strengthen the impact of first offers. However, a holistic view of the process of first offers in negotiations remains missing, and significant research gaps must be filled to fully understand the mechanisms of first offers. Furthermore, while extant research contains anecdotal advice for negotiators, no holistic overview of research findings has been presented to date. This study conducted a structured review of 119 journal articles published since 1967, contributing to the field in four main ways: (a) proposing a definition of first offers, (b) integrating previous findings into a process model of first offers in negotiation, (c) summarizing the results to date in a structured literature review, and (d) identifying crucial research gaps that must be addressed. Future research should conduct systematic investigations of the influence of first offers on negotiation outcomes, employing a “negotiation lens” to emphasize the dyadic and interactive character of negotiations.

Keywords: negotiation, conflict, first offer, anchoring, negotiation opening, structured review

JEL Classification: D74, F51

Suggested Citation

Lipp, Wolfram and Smolinski, Remigiusz and Kesting, Peter, Toward a Process Model of First Offers and Anchoring in Negotiations (July 15, 2022). Negotiation and Conflict Management Research, Forthcoming , Available at SSRN: https://ssrn.com/abstract=4163493

Wolfram Lipp

TUM School of Management,Technical University of Munich

Remigiusz Smolinski (Contact Author)

Handelshochschule Leipzig (HHL) - Leipzig Graduate School of Management ( email )

Leipzig Graduate School of Management
Jahnallee 59
04015 Leipzig
Germany

Peter Kesting

Aarhus University - Department of Organization and Management ( email )

Fuglesangs Allé 4
Aarhus V, 8210
Denmark

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