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Power and deception in ultimatum bargaining

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  • Koning, Lukas
  • Steinel, Wolfgang
  • Beest, Ilja van
  • Dijk, Eric van
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    Abstract

    In two experiments we investigated the relation between power and deception in ultimatum bargaining. Results showed that recipients of an ultimatum used deception to obtain better offers and that more recipients did so in a low power position. Further analyses showed that the recipient's use of deception was mediated by concerns about receiving a low offer. For allocators, being in a low power position did not increase the use of deception. Instead, allocators increased their offer when they were in a low power position. The results are discussed in terms of an instrumental approach to deception. This approach incorporates the notion that bargainers (a) will use deception as a means to reach their goals in bargaining but (b) may refrain from using deception when they have alternative means to reach their goals.

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    Bibliographic Info

    Article provided by Elsevier in its journal Organizational Behavior and Human Decision Processes.

    Volume (Year): 115 (2011)
    Issue (Month): 1 (May)
    Pages: 35-42

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    Handle: RePEc:eee:jobhdp:v:115:y:2011:i:1:p:35-42

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    Web page: http://www.elsevier.com/locate/obhdp

    Related research

    Keywords: Bargaining Deception Power Ethics Ultimatums Negotiations Lying Information Dependency;

    References

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    1. Alvin E Roth & J K Murnighan, 1997. "The rule of information in bargaining: an experimental study," Levine's Working Paper Archive 1631, David K. Levine.
    2. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    3. Kagel, John H. & Kim, Chung & Moser, Donald, 1996. "Fairness in Ultimatum Games with Asymmetric Information and Asymmetric Payoffs," Games and Economic Behavior, Elsevier, vol. 13(1), pages 100-110, March.
    4. Suleiman, Ramzi, 1996. "Expectations and fairness in a modified Ultimatum game," Journal of Economic Psychology, Elsevier, vol. 17(5), pages 531-554, November.
    5. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
    6. Samuel B. Bacharach & Edward J. Lawler, 1981. "Power and tactics in bargaining," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 34(2), pages 219-233, January.
    7. Kravitz, David A. & Gunto, Samuel, 1992. "Decisions and perceptions of recipients in ultimatum bargaining games," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 21(1), pages 65-84.
    8. Blount, Sally, 1995. "When Social Outcomes Aren't Fair: The Effect of Causal Attributions on Preferences," Organizational Behavior and Human Decision Processes, Elsevier, vol. 63(2), pages 131-144, August.
    9. Boles, Terry L. & Croson, Rachel T. A. & Murnighan, J. Keith, 2000. "Deception and Retribution in Repeated Ultimatum Bargaining," Organizational Behavior and Human Decision Processes, Elsevier, vol. 83(2), pages 235-259, November.
    10. Fellner, Gerlinde & Guth, Werner, 2003. "What limits escalation?--Varying threat power in an ultimatum experiment," Economics Letters, Elsevier, vol. 80(1), pages 53-60, July.
    11. Steinel, Wolfgang & Utz, Sonja & Koning, Lukas, 2010. "The good, the bad and the ugly thing to do when sharing information: Revealing, concealing and lying depend on social motivation, distribution and importance of information," Organizational Behavior and Human Decision Processes, Elsevier, vol. 113(2), pages 85-96, November.
    12. Straub, Paul G. & Murnighan, J. Keith, 1995. "An experimental investigation of ultimatum games: information, fairness, expectations, and lowest acceptable offers," Journal of Economic Behavior & Organization, Elsevier, vol. 27(3), pages 345-364, August.
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    Cited by:
    1. Shalvi, Shaul & Reijseger, Gaby & Handgraaf, Michel J.J. & Appelt, Kirstin C. & ten Velden, Femke S. & Giacomantonio, Mauro & De Dreu, Carsten K.W., 2013. "Pay to walk away: Prevention buyers prefer to avoid negotiation," Journal of Economic Psychology, Elsevier, vol. 38(C), pages 40-49.

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