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Good Grief! Anxiety Sours the Economic Benefits of First Offers

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Listed:
  • Ashleigh Shelby Rosette

    (Duke University)

  • Shirli Kopelman

    (University of Michigan)

  • JeAnna Lanza Abbott

    (University of Houston)

Abstract

Two studies tested whether making first offers influences negotiators’ feelings of anxiety and their sense of satisfaction. The results of Study 1 show that the strategy of making the first offer led to decreased levels of satisfaction with the negotiation process and outcomes. This effect was mediated by perceived feelings of anxiety. Study 2 discerned that anxiety about making the first offer derived from self-perception concerns, represented as anxiety about being taken advantage of by the opposing party. In both studies, anxiety led negotiators who made the first offer to be relatively less satisfied with the negotiation, than negotiators who did not make the first offer, despite the increased economic gains associated with making the first offer.

Suggested Citation

  • Ashleigh Shelby Rosette & Shirli Kopelman & JeAnna Lanza Abbott, 2014. "Good Grief! Anxiety Sours the Economic Benefits of First Offers," Group Decision and Negotiation, Springer, vol. 23(3), pages 629-647, May.
    • Handle: RePEc:spr:grdene:v:23:y:2014:i:3:d:10.1007_s10726-013-9348-4
    DOI: 10.1007/s10726-013-9348-4
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    1. repec:cup:judgdm:v:9:y:2014:i:6:p:548-557 is not listed on IDEAS
    2. Yossi Maaravi & Asya Pazy & Yoav Ganzach, 2014. "Winning a battle but losing the war: On the drawbacks of using the anchoring tactic in distributive negotiations," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(6), pages 548-557, November.
    3. Wolfram E. Lipp & Remigiusz Smolinski & Peter Kesting, 2023. "Beyond the First Offer: Decoding Negotiation Openings and Their Impact on Economic and Subjective Outcomes," Group Decision and Negotiation, Springer, vol. 32(2), pages 395-433, April.
    4. Yossi Maaravi & Aharon Levy, 2017. "When your anchor sinks your boat: Information asymmetry in distributive negotiations and the disadvantage of making the first offer," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 12(5), pages 420-429, September.
    5. repec:cup:judgdm:v:12:y:2017:i:5:p:420-429 is not listed on IDEAS
    6. Yellowlees Douglas & Samantha Miller, 2015. "Availability Bias Can Improve Women¡¯s Propensity to Negotiate," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 6(2), pages 86-95, March.
    7. Jiang, Cheng-Ming & Ma, Jia-Tao, 2019. "“When your anchor sinks your boat”: A replication and extension study," Journal of Economic Psychology, Elsevier, vol. 75(PA).
    8. Denise Fleck & Roger J. Volkema & Sergio Pereira, 2016. "Dancing on the Slippery Slope: The Effects of Appropriate Versus Inappropriate Competitive Tactics on Negotiation Process and Outcome," Group Decision and Negotiation, Springer, vol. 25(5), pages 873-899, September.

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