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Positive affect and decision frame in negotiation

Author

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  • Peter J. Carnevale

    (University of Southern California
    University of Southern California)

Abstract

This study examined decision frame (“gain” vs. “loss”) and negotiator affect (positive vs. control) in a simulated bilateral negotiation where negotiators dealt with a programmed opponent and made offers and counteroffers on three issues that differed in value. Direct comparisons between the gain and loss frame conditions, in the control-affect condition, revealed a replication of the standard frame effect: a loss frame produced fewer concessions than a gain frame. However, an interaction effect indicated that the frame effect reversed in the positive affect condition: under positive affect, a loss frame produced greater concessions than a gain frame. In addition, the data indicated a replication of earlier work showing that positive affect can lead to more integrative agreements in negotiation. The results suggest that positive affect can influence location of a reference point in evaluating prospective outcomes; one implication is that prospect theory can be useful for understanding the effects of affect in bilateral negotiation.

Suggested Citation

  • Peter J. Carnevale, 2008. "Positive affect and decision frame in negotiation," Group Decision and Negotiation, Springer, vol. 17(1), pages 51-63, January.
    • Handle: RePEc:spr:grdene:v:17:y:2008:i:1:d:10.1007_s10726-007-9090-x
    DOI: 10.1007/s10726-007-9090-x
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    3. Overbeck, Jennifer R. & Neale, Margaret A. & Govan, Cassandra L., 2010. "I feel, therefore you act: Intrapersonal and interpersonal effects of emotion on negotiation as a function of social power," Organizational Behavior and Human Decision Processes, Elsevier, vol. 112(2), pages 126-139, July.
    4. Kene Boun My & Nicolas Lampach & Mathieu Lefebvre & Jacopo Magnani, 2018. "Effects of gain-loss frames on advantageous inequality aversion," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(2), pages 99-109, December.
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    6. Morteza Dehghani & Peter J. Carnevale & Jonathan Gratch, 2014. "Interpersonal effects of expressed anger and sorrow in morally charged negotiation," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(2), pages 104-113, March.
    7. James D. Fielder, 2022. "Ghosts of the Titanomachy: Structure, Commitment, Economics, and Risk as Causal Mechanisms in an Online Battle," Simulation & Gaming, , vol. 53(3), pages 265-284, June.
    8. Tung, Vincent Wing Sun & Chen, Po-Ju & Schuckert, Markus, 2017. "Managing customer citizenship behaviour: The moderating roles of employee responsiveness and organizational reassurance," Tourism Management, Elsevier, vol. 59(C), pages 23-35.

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    Keywords

    Negotiation; Frame; Affect; Mood;
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