IDEAS home Printed from https://ideas.repec.org/a/sae/jocore/v38y1994i4p647-664.html
   My bibliography  Save this article

The Effect of Friendship on Personal Business Transactions

Author

Listed:
  • Jennifer J. Halpern

    (Cornell University)

Abstract

A laboratory study examined effects of friendship on expectations of pricing in personal business transactions. Friends expect to pay more but charge less for a variety of commodities than do strangers. Remarkably, without discussion, friends agree on prices for commodities, whereas strangers do not. The result was replicated in a second study and extended to other commodities. The effect may be due to cognitive scripts for transactions with friends.

Suggested Citation

  • Jennifer J. Halpern, 1994. "The Effect of Friendship on Personal Business Transactions," Journal of Conflict Resolution, Peace Science Society (International), vol. 38(4), pages 647-664, December.
    • Handle: RePEc:sae:jocore:v:38:y:1994:i:4:p:647-664
    DOI: 10.1177/0022002794038004003
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0022002794038004003
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0022002794038004003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kenneth E. Boulding, 1973. "Love, Fear and the Economist," Challenge, Taylor & Francis Journals, vol. 16(3), pages 32-39, July.
    2. Shiller, Robert J & Boycko, Maxim & Korobov, Vladimir, 1991. "Popular Attitudes toward Free Markets: The Soviet Union and the United States Compared," American Economic Review, American Economic Association, vol. 81(3), pages 385-400, June.
    3. Carroll, John S. & Bazerman, Max H. & Maury, Robin, 1988. "Negotiator cognitions: A descriptive approach to negotiators' understanding of their opponents," Organizational Behavior and Human Decision Processes, Elsevier, vol. 41(3), pages 352-370, June.
    4. Roth, Alvin E & Murnighan, J Keith, 1982. "The Role of Information in Bargaining: An Experimental Study," Econometrica, Econometric Society, vol. 50(5), pages 1123-1142, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jaime Ramirez-Fernandez & Jimena Y. Ramirez-Marin & Lourdes Munduate, 2018. "I Expected More from You: The Influence of Close Relationships and Perspective Taking on Negotiation Offers," Group Decision and Negotiation, Springer, vol. 27(1), pages 85-105, February.
    2. Qi Li & Ni Liang & Eldon Y. Li, 2018. "Does friendship quality matter in social commerce? An experimental study of its effect on purchase intention," Electronic Commerce Research, Springer, vol. 18(4), pages 693-717, December.
    3. Leonard Greenhalgh & Deborah I. Chapman, 1998. "Negotiator Relationships: Construct Measurement, and Demonstration of Their Impact on the Process and Outcomes of Negotiation," Group Decision and Negotiation, Springer, vol. 7(6), pages 465-489, November.
    4. Leonard Greenhalgh & Roderick Gilkey, 1997. "Clinical Assessment Methods in Negotiation Research: The Study of Narcissism and Negotiator Effectiveness," Group Decision and Negotiation, Springer, vol. 6(4), pages 289-316, July.
    5. Eva-Maria Pesendorfer & Sabine T. Koeszegi, 2007. "Social Embeddedness in Electronic Negotiations," Group Decision and Negotiation, Springer, vol. 16(4), pages 399-415, July.
    6. Jennifer Halpern, 1997. "The Transaction Index: A Method for Standardizing Comparisons of Transaction Characteristics Across Different Contexts," Group Decision and Negotiation, Springer, vol. 6(6), pages 557-572, December.
    7. Rudolf Vetschera & Guenther Kainz, 2013. "Do Self-Reported Strategies Match Actual Behavior in a Social Preference Experiment?," Group Decision and Negotiation, Springer, vol. 22(5), pages 823-849, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jennifer J. Halpern, 1997. "Elements of a Script for Friendship in Transactions," Journal of Conflict Resolution, Peace Science Society (International), vol. 41(6), pages 835-868, December.
    2. James Konow, 2000. "Fair Shares: Accountability and Cognitive Dissonance in Allocation Decisions," American Economic Review, American Economic Association, vol. 90(4), pages 1072-1091, September.
    3. Simon G�chter & Arno Riedl, "undated". "Moral Property Rights in Bargaining," IEW - Working Papers 113, Institute for Empirical Research in Economics - University of Zurich.
    4. Nicolas R. Ziebarth & Gert G. Wagner, 2013. "Top-down v. Bottom-up: The Long-Term Impact of Government Ideology and Personal Experience on Values," Discussion Papers of DIW Berlin 1280, DIW Berlin, German Institute for Economic Research.
    5. Stephen Leider & William S. Lovejoy, 2016. "Bargaining in Supply Chains," Management Science, INFORMS, vol. 62(10), pages 3039-3058, October.
    6. Chong, Alberto & Gradstein, Mark, 2018. "Imposed institutions and preferences for redistribution §," Journal of Institutional Economics, Cambridge University Press, vol. 14(1), pages 127-156, February.
    7. Bernd Hayo & Florian Neumeier, 2017. "Public Attitudes toward Fiscal Consolidation: Evidence from a Representative German Population Survey," Kyklos, Wiley Blackwell, vol. 70(1), pages 42-69, February.
    8. Ellen Garbarino & Robert Slonim, 2007. "Preferences and decision errors in the winner’s curse," Journal of Risk and Uncertainty, Springer, vol. 34(3), pages 241-257, June.
    9. Herbst, Luisa & Konrad, Kai A. & Morath, Florian, 2017. "Balance of power and the propensity of conflict," Games and Economic Behavior, Elsevier, vol. 103(C), pages 168-184.
    10. repec:zbw:bofitp:2022_012 is not listed on IDEAS
    11. Roy Chen & Yan Chen & Yohanes E. Riyanto, 2021. "Best practices in replication: a case study of common information in coordination games," Experimental Economics, Springer;Economic Science Association, vol. 24(1), pages 2-30, March.
    12. Di Tella, Rafael & Galiani, Sebastian & Schargrodsky, Ernesto, 2012. "Reality versus propaganda in the formation of beliefs about privatization," Journal of Public Economics, Elsevier, vol. 96(5), pages 553-567.
    13. Macleod, W. Bentley, 1985. "A theory of conscious parallelism," European Economic Review, Elsevier, vol. 27(1), pages 25-44, February.
    14. Michael J Weir & Catherine M Ashcraft & Natallia Leuchanka Diessner & Bridie McGreavy & Emily Vogler & Todd Guilfoos, 2020. "Language effects on bargaining," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-20, March.
    15. Kenneth Koford, 1991. "Why the Ex-Communist Countries Should Take the 'Middle Way' to the Market," Economics Working Paper Archive wp_54, Levy Economics Institute.
    16. Costa-Font, Joan & Nicińska, Anna, 2023. "Comrades in the family? Soviet communism and demand for family insurance," LSE Research Online Documents on Economics 118472, London School of Economics and Political Science, LSE Library.
    17. David R. Mandel, 2006. "Economic Transactions among Friends," Journal of Conflict Resolution, Peace Science Society (International), vol. 50(4), pages 584-606, August.
    18. Irina Denisova & Markus Eller & Ekaterina Zhuravskaya, 2010. "What do Russians think about transition?1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(2), pages 249-280, April.
    19. Natchov, Timur V. & Pyle, William, 2022. "Revealed in transition: The political effect of planning's legacy," BOFIT Discussion Papers 12/2022, Bank of Finland Institute for Emerging Economies (BOFIT).
    20. J. Keith Murnighan & Alvin E. Roth, 1983. "Expecting Continued Play in Prisoner's Dilemma Games," Journal of Conflict Resolution, Peace Science Society (International), vol. 27(2), pages 279-300, June.
    21. Konow, James, 1996. "A positive theory of economic fairness," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 13-35, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jocore:v:38:y:1994:i:4:p:647-664. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://pss.la.psu.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.