Missed Opportunity for Creating Value in Negotiations: Reluctance to Making Integrative Gambit Offers
39 Pages Posted: 5 Jun 2005
In the present study we address a multi-issue negotiation agenda, where several issues are under consideration, and parties have different priorities among these issues. We suggest that in such agendas, loss aversion and within issue anchoring may constrain the configuration of offers that parties propose to each other during the course of negotiation. We specifically focus on offers in which negotiators self propose to give the other party more than was demanded on one of the issues, while still maintaining or improving their overall value. We term such offers Integrative Gambit Offers (IGOs) and show that although making such offers improves integrative negotiation outcome, the frequency of making them is relatively low, and does not increase as negotiators gain experience with the task.
Keywords: loss aversion, negotiation, decision-making, cognitive bias, anchoring, creative thinking
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