Predicting the outcome of a two-party price negotiation: Contribution of reservation price, aspiration price and opening offer
Buelens, Marc Van Poucke, Dirk
Buelens, Marc
Van Poucke, Dirk
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Publication Type
Journal article with impact factor
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Supervisor
Publication Year
2002
Journal
Journal of Economic Psychology
Book
Publication Volume
23
Publication Issue
1
Publication Begin page
67
Publication End page
76
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Abstract
Despite a long tradition in negotiation research, it is still not known to what extent it is possible to predict the result of a specific negotiation. Negotiation literature has remained unclear on the question of which reference point is most important. A total of 384 experienced managers participated in 192 simulated seller-buyer negotiations. More than 57% of the variance in negotiation outcome can be explained by 2 reference points, namely buyer's and seller's intended initial offer. The notion of offer zone, which is the difference between aspiration price and initial offer, is introduced. Offer zone has a significant and consistent influence on the negotiated outcome. Results from 106 participants in a replication study with a different no deal structure confirm findings.
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Keywords
Decision Making