When your anchor sinks your boat:Information asymmetry in distributive negotiations and the disadvantage of making the first offer

The literature on behavioral decision-making and negotiations to date usually advocates first-mover advantage in distributive negotiations, and bases this preference on the anchoring heuristic. In the following paper, we suggest that the preference for moving first vs. moving second in negotiations may not be as clear-cut as presumed, especially in situations characterized by information asymmetry between negotiating counterparts. In Study 1, we examined people's initiation preferences and found that unless taught otherwise, people intuitively often prefer to move second. In Studies 2--4, we experimentally tested the suggested advantage of moving second, and demonstrated that in information-asymmetry scenarios – when one party has perfect background information and the other has none --- it is actually preferable for both counterparts not to give the first offer while negotiating. We discuss the implications of our findings on the field of negotiation and decision-making, and lay the groundwork for future studies examining this issue

When your anchor sinks your boat:Information asymmetry in distributive negotiations and the disadvantage of making the first offer

The literature on behavioral decision-making and negotiations to date usually advocates first-mover advantage in distributive negotiations, and bases this preference on the anchoring heuristic. In the following paper, we suggest that the preference for moving first vs. moving second in negotiations may not be as clear-cut as presumed, especially in situations characterized by information asymmetry between negotiating counterparts. In Study 1, we examined people's initiation preferences and found that unless taught otherwise, people intuitively often prefer to move second. In Studies 2--4, we experimentally tested the suggested advantage of moving second, and demonstrated that in information-asymmetry scenarios – when one party has perfect background information and the other has none --- it is actually preferable for both counterparts not to give the first offer while negotiating. We discuss the implications of our findings on the field of negotiation and decision-making, and lay the groundwork for future studies examining this issue

The boomerang effect of psychological interventions

Research has found that teaching people about psychological biases can help counteract biased behavior. On the other hand, due to the innate need for preservation of a positive self-image, it is likely that teaching people about biases they hold, may cause a boomerang effect in cases where being associated with a specific bias implies negative social connotations. In the three studies below we examine situations in which psychological bias implies negatively associated behavior, and show that teaching people about bias in those contexts can be counterproductive

Winning a battle but losing the war: On the drawbacks of using the anchoring tactic in distributive negotiations

In two experiments, we explored the possible drawbacks of applying the anchoring tactic in a negotiation context. In Study 1, buyers who used the anchoring tactic made higher profits, but their counterparts thought their own results were worse than expected and thus were less willing to engage in future negotiations with them. Study 2 showed that using the anchoring tactic in a market decreased accumulated profits by increasing the rate of impasses and prolonging the negotiations. The implications of these findings are discussed

Winning a battle but losing the war: On the drawbacks of using the anchoring tactic in distributive negotiations

Abstract In two experiments, we explored the possible drawbacks of applying the anchoring tactic in a negotiation context. In Study 1, buyers who used the anchoring tactic made higher profits, but their counterparts thought their own results were worse than expected and thus were less willing to engage in future negotiations with them. Study 2 showed that using the anchoring tactic in a market decreased accumulated profits by increasing the rate of impasses and prolonging the negotiations. The implications of these findings are discussed

Diffuse ST segment depression from hypothermia

Hypothermia is known to cause specific electrocardiographic (EKG) changes such as Osborne waves and bradycardia. We report diffuse ST segment depression, an atypical EKG change, in a patient with a core temperature of 29.4°C (85°F). This patient had no previous cardiovascular pathology, and his EKG changes resolved gradually with aggressive warming. We also discuss the pathophysiology and clinical significance of ST depression in the general population and the typical EKG changes in hypothermia patients

Using Cognitive Agents to Train Negotiation Skills

Training negotiation is difficult because it is a complex, dynamic activity that involves multiple parties. It is often not clear how to create situations in which students can practice negotiation or how to measure students' progress. Some have begun to address these issues by creating artificial software agents with which students can train. These agents have the advantage that they can be “reset,” and played against multiple times. This allows students to learn from their mistakes and try different strategies. However, these agents are often based on normative theories of how negotiators should conduct themselves, not necessarily how people actually behave in negotiations. Here, we take a step toward addressing this gap by developing an agent grounded in a cognitive architecture, ACT-R. This agent contains a model of theory-of-mind, the ability of humans to reason about the mental states of others. It uses this model to try to infer the strategy of the opponent and respond accordingly. In a series of experiments, we show that this agent replicates some aspects of human performance, is plausible to human negotiators, and can lead to learning gains in a small-scale negotiation task