Impact of and interaction between behavioral and economic decision support in electronic negotiations

Abstract

In this study we compare the effects of two distinct approaches in negotiation support: negotiation analysis providing economic decision support, and mediation analysis offering behavioral decision support. Those negotiators with economic or behavioral decision support at their disposal were expected to reach better results. Furthermore, behavioral decision support would not only lead to more integrative behavior, but also to more satisfaction about process variables. The hypotheses were tested in a laboratory experiment with 224 undergraduate students from four European universities. Contrary to our expectations, economic decision support did not yield better results, but instead increased informal communication, whereas behavioral decision support led to fewer, but larger concessions. Satisfaction of subjects with the negotiation process and outcomes reflects the strength of the support approaches. The implications of these results and the impact of both types of decision support are discussed. © 2012 Springer-Verlag.