The pernicious role of asymmetric history in negotiations

Author(s)
Linda Dezsö, George Loewenstein, Steinhart Jonathan, Gábor Neszveda, Barnabás Szászi
Abstract

The role of history in negotiations is a double-edged sword. Although parties can develop trust over time, there are also countless examples of protracted feuds that developed as a result of conflicting interpretations and invocations of history. We propose that, due to biased invocations of the past, history is likely to play a pernicious role in negotiations - particularly when given an asymmetric history in which one party benefited at the expense of the other. We test this prediction in two, two-stage experiments. We find that asymmetric history in a first stage leads to increased impasses in a second stage, but that this effect holds only when the second stage pairs the same two parties who shared the asymmetric history in the first.

Organisation(s)
Department of Occupational, Economic and Social Psychology
External organisation(s)
Tilburg University, Eötvös Loránd University Budapest, Carnegie Mellon University, Austrian Institute of Technology
Journal
Journal of Economic Behavior & Organization
Volume
116
Pages
430-438
No. of pages
9
ISSN
0167-2681
DOI
https://doi.org/10.1016/j.jebo.2015.05.016
Publication date
08-2015
Peer reviewed
Yes
Austrian Fields of Science 2012
502053 Economics, 501002 Applied psychology
Keywords
ASJC Scopus subject areas
Economics and Econometrics, Organizational Behavior and Human Resource Management
Portal url
https://ucrisportal.univie.ac.at/en/publications/1bd4965e-f652-4391-b587-a8285e53bc67