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Perceived Relative Power and its Influence on Negotiations

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  • Rebecca J. Wolfe

    (Princeton University)

  • Kathleen L. Mcginn

    (Harvard University)

Abstract

In an experimental study, we investigate perceived relative power in negotiations and its effect on the distribution of resources and the integrativeness of agreements. We contrast perceived relative power with the objective individual level measure of power often used in past research: the parties’ alternatives to a negotiated agreement. We found that alternatives affected the distribution of outcomes, while perceived relative power and alternatives affected the integrativeness of outcomes. We found that negotiating pairs who perceived a smaller difference in relative power reached agreements of greater integrativeness than pairs who perceived a greater power difference, even after controlling for alternatives and aspirations. We explore the implications of treating power in negotiations as a perceived and relational construct.

Suggested Citation

  • Rebecca J. Wolfe & Kathleen L. Mcginn, 2005. "Perceived Relative Power and its Influence on Negotiations," Group Decision and Negotiation, Springer, vol. 14(1), pages 3-20, January.
    • Handle: RePEc:spr:grdene:v:14:y:2005:i:1:d:10.1007_s10726-005-3873-8
    DOI: 10.1007/s10726-005-3873-8
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    References listed on IDEAS

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    1. Pinkley, Robin L. & Neale, Margaret A. & Bennett, Rebecca J., 1994. "The Impact of Alternatives to Settlement in Dyadic Negotiation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 57(1), pages 97-116, January.
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    Cited by:

    1. Dariusz Siemieniako & Pawe³ Kaliszewski, 2022. "Factors influencing structural power dynamics in buyer-supplier relationships: a power sources framework and application of the critical incident technique," Oeconomia Copernicana, Institute of Economic Research, vol. 13(1), pages 151-179, March.
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    3. Schaerer, Michael & Loschelder, David D. & Swaab, Roderick I., 2016. "Bargaining zone distortion in negotiations: The elusive power of multiple alternatives," Organizational Behavior and Human Decision Processes, Elsevier, vol. 137(C), pages 156-171.
    4. McCarter, Matthew W. & Wade-Benzoni, Kimberly A. & Kamal, Darcy K. Fudge & Bang, H. Min & Hyde, Steven J. & Maredia, Reshma, 2020. "Models of intragroup conflict in management: A literature review," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 925-946.
    5. Katrin Zulauf & Ralf Wagner, 2023. "Countering Negotiation Power Asymmetries by Using the Adjusted Winner Algorithm," SN Operations Research Forum, Springer, vol. 4(1), pages 1-20, March.
    6. Patton, Charles & Balakrishnan, P.V. (Sundar), 2012. "Negotiating when outnumbered: Agenda strategies for bargaining with buying teams," International Journal of Research in Marketing, Elsevier, vol. 29(3), pages 280-291.
    7. Gabriella Cacciotti & Deniz Ucbasaran, 2018. "Commentary: Blockholder Structures and Power Mechanisms in Family Firms," Entrepreneurship Theory and Practice, , vol. 42(2), pages 252-258, March.
    8. Van den Abbeele, Alexandra & Roodhooft, Filip & Warlop, Luk, 2009. "The effect of cost information on buyer-supplier negotiations in different power settings," Accounting, Organizations and Society, Elsevier, vol. 34(2), pages 245-266, February.
    9. Chad Albrecht & Daniel Holland & Ricardo Malagueño & Simon Dolan & Shay Tzafrir, 2015. "The Role of Power in Financial Statement Fraud Schemes," Journal of Business Ethics, Springer, vol. 131(4), pages 803-813, November.
    10. Elaine Farndale & Veronica Hope-Hailey, 2009. "Personnel Departmental Power: Realities from the UK Higher Education Sector," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 20(4), pages 392-412.
    11. Stephen E. Weiss, 2012. "Negotiators’ Effectiveness with Mixed Agendas: An Empirical Exploration of Tasks, Decisions and Performance Criteria," Group Decision and Negotiation, Springer, vol. 21(3), pages 255-290, May.
    12. Mara Olekalns & Philip Smith, 2009. "Mutually Dependent: Power, Trust, Affect and the Use of Deception in Negotiation," Journal of Business Ethics, Springer, vol. 85(3), pages 347-365, March.
    13. Ricky S. Wong & Susan Howard, 2017. "Blinded by Power: Untangling Mixed Results Regarding Power and Efficiency in Negotiation," Group Decision and Negotiation, Springer, vol. 26(2), pages 215-245, March.
    14. Sangwon Lee & Suneung Ahn & Changsoon Park & You-Jin Park, 2016. "Development of a Resource Allocation Model Using Competitive Advantage," Sustainability, MDPI, vol. 8(3), pages 1-13, February.
    15. Sabina Ramona Trif & Petru Lucian Curșeu & Oana Cătălina Fodor, 2023. "Individual Versus Group Negotiation in Multiparty Systems: The Effect of Power and Goal Difficulty on Negotiation Outcomes in a Potential Gain Task," Group Decision and Negotiation, Springer, vol. 32(1), pages 209-232, February.

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