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The power of phantom alternatives in negotiation: How what could be haunts what is

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  • Pinkley, Robin L.
  • Conlon, Donald E.
  • Sawyer, John E.
  • Sleesman, Dustin J.
  • Vandewalle, Don
  • Kuenzi, Maribeth

Abstract

We examine the notion of a Phantom BATNA – a negotiation alternative that may or may not materialize – and its impact on a current negotiation. Across three studies, we investigate the impact of such alternatives on negotiation, and compare them to when negotiators have a certain BATNA, when they have no BATNA, or when they are provided no information whatsoever regarding a BATNA. We demonstrate that perceptions of power mediate the effects of BATNA likelihood on the performance-related outcomes (final settlements or counter-offers) of negotiators. We establish these effects when the alternative has a known or an unknown likelihood of occurring. Additionally, BATNA likelihood influences the extent to which negotiators mention the possibility of an alternative to their counterpart during the negotiation. Based on our investigation, we offer BATNA likelihood as an important dimension of BATNA influence that can enhance theoretical and practical understanding, and stimulate future research.

Suggested Citation

  • Pinkley, Robin L. & Conlon, Donald E. & Sawyer, John E. & Sleesman, Dustin J. & Vandewalle, Don & Kuenzi, Maribeth, 2019. "The power of phantom alternatives in negotiation: How what could be haunts what is," Organizational Behavior and Human Decision Processes, Elsevier, vol. 151(C), pages 34-48.
    • Handle: RePEc:eee:jobhdp:v:151:y:2019:i:c:p:34-48
    DOI: 10.1016/j.obhdp.2018.12.008
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    References listed on IDEAS

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    Cited by:

    1. Sleesman, Dustin J., 2019. "Pushing through the tension while stuck in the mud: Paradox mindset and escalation of commitment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 155(C), pages 83-96.
    2. Brady, Garrett L. & Inesi, M. Ena & Mussweiler, Thomas, 2021. "The power of lost alternatives in negotiations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 162(C), pages 59-80.
    3. Daisung Jang & Hyeran Choi & Jeffrey Loewenstein, 2021. "Integration Through Redefinition: Revisiting the Role of Negotiators’ Goals," Group Decision and Negotiation, Springer, vol. 30(5), pages 1113-1131, October.
    4. Hart, Einav & Schweitzer, Maurice E., 2022. "When we should care more about relationships than favorable deal terms in negotiation: The economic relevance of relational outcomes (ERRO)," Organizational Behavior and Human Decision Processes, Elsevier, vol. 168(C).

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