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After the deal: Talk, trust building and the implementation of negotiated agreements

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  • Mislin, Alexandra A.
  • Campagna, Rachel L.
  • Bottom, William P.
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    Abstract

    The success of a negotiated agreement depends on implementation and implications for future exchange between the parties. This paper examines structural, affective and contractual factors that influence implementation behavior. Predictions derived from contract theory and recent negotiation theories were tested in two laboratory studies involving the negotiation of an employment contract. In Experiment 1 trust formation facilitated by so-called "cheap" talk and the provision of a sufficient contingent contract promoted vigorous contract implementation. Positive affect induced in the employer prior to negotiation had no discernable effect on subsequent implementation. In Experiment 2 induced employee positive affect did motivate implementation behavior but the effect hinged on the form of the contract. Small talk before contracting increased employee's willingness to be financially vulnerable in subsequent exchange with the employer. Implications for general negotiation theory are considered.

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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: 55-68

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    Handle: RePEc:eee:jobhdp:v:115:y:2011:i:1:p:55-68

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

    Related research

    Keywords: Negotiation Affect Agency theory Trust;

    References

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    1. Patrick Bolton & Mathias Dewatripont, 2005. "Contract Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262025760, December.
    2. Mara Olekalns & Philip Smith, 2007. "Loose with the Truth: Predicting Deception in Negotiation," Journal of Business Ethics, Springer, vol. 76(2), pages 225-238, December.
    3. de Dreu, Carsten K. W. & Carnevale, Peter J. D. & Emans, Ben J. M. & van de Vliert, Evert, 1994. "Effects of Gain-Loss Frames in Negotiation: Loss Aversion, Mismatching, and Frame Adoption," Organizational Behavior and Human Decision Processes, Elsevier, vol. 60(1), pages 90-107, October.
    4. Thompson, Leigh & Gentner, Dedre & Loewenstein, Jeffrey, 2000. "Avoiding Missed Opportunities in Managerial Life: Analogical Training More Powerful Than Individual Case Training," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 60-75, May.
    5. Bottom, William P. & Studt, Amy, 1993. "Framing Effects and the Distributive Aspect of Integrative Bargaining," Organizational Behavior and Human Decision Processes, Elsevier, vol. 56(3), pages 459-474, December.
    6. Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-39, May.
    7. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
    8. Ariel Rubinstein, 1980. "Perfect Equilibrium in a Bargaining Model (Now published in Econometrica, vol.50, (1982), pp. 97-100.)," STICERD - Theoretical Economics Paper Series /1980/13, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    9. Bottom, William P., 1998. "Negotiator Risk: Sources of Uncertainty and the Impact of Reference Points on Negotiated Agreements," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(2), pages 89-112, November.
    10. Schweitzer, Maurice E. & Hershey, John C. & Bradlow, Eric T., 2006. "Promises and lies: Restoring violated trust," Organizational Behavior and Human Decision Processes, Elsevier, vol. 101(1), pages 1-19, September.
    11. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
    12. Isen, Alice M. & Geva, Nehemia, 1987. "The influence of positive affect on acceptable level of risk: The person with a large canoe has a large worry," Organizational Behavior and Human Decision Processes, Elsevier, vol. 39(2), pages 145-154, April.
    13. Kalai, Ehud & Smorodinsky, Meir, 1975. "Other Solutions to Nash's Bargaining Problem," Econometrica, Econometric Society, vol. 43(3), pages 513-18, May.
    14. Thompson, Leigh & Hastie, Reid, 1990. "Social perception in negotiation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 47(1), pages 98-123, October.
    15. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    16. Barry, Bruce & Oliver, Richard L., 1996. "Affect in Dyadic Negotiation: A Model and Propositions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 67(2), pages 127-143, August.
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    Cited by:
    1. Chua, Roy Y.J. & Morris, Michael W. & Mor, Shira, 2012. "Collaborating across cultures: Cultural metacognition and affect-based trust in creative collaboration," Organizational Behavior and Human Decision Processes, Elsevier, vol. 118(2), pages 116-131.

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