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Kristensen, Henrik; Gärling, Tommy

doi:10.1023/a:1008722223618

Cited by 73 publications

(5 citation statements)

References 23 publications

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“…The first offer in a negotiation has been extensively studied in negotiation research with a broad consensus that the size of the first offer influences the outcome of negotiations. This first-offer effect has been shown in multiple studies in different analytical, experimental, and field settings (Sadanand 1996;Kristensen and Gärling 2000;Chi, Friedman, and Shih 2013;Yao, Ma, and Zhang 2018;Davis and Hyndman 2019).…”

Section: Role Of the First Offermentioning

confidence: 71%

“…The first offer has received much attention in research on negotiations (Ochs and Roth 1989;Kristensen and Gärling 2000;Galinsky and Mussweiler 2001). Lipp, Smolinski, and Kesting (2023: 2) defined the first offer as "the first settlement proposal put forward by either negotiating party"; in sales negotiations, for example, this is typically a price.…”

Section: Introductionmentioning

confidence: 99%

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“What is Your Best Price?”—An Experimental Study of an Alternative Negotiation Opening

Lipp¹,

Kesting²,

Smolinski³

2023

Negotiation Journal

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Much attention has been devoted to the “first offer” in negotiation research. Rightly so, as strong empirical evidence shows that the first offer has a significant impact on the negotiated outcome and, therefore, is a highly relevant topic for negotiation scholars and practitioners. Scholars typically recommend making the first offer. However, in the field, we have observed an alternative opening tactic—asking for the best price that the counterpart is willing to accept. This question represents a real alternative to making the first offer by initiating the discussion of specific settlement proposals, provided the counterpart answers the query. Does it, however, lead the other side to make a better offer? How does the question impact the economic and relational outcomes of the negotiation? Is it advisable to use this tactic in negotiations? We investigated these questions based on a controlled laboratory experiment, in which 227 dyads of cellphone buyers and sellers negotiated synchronously via a text chat. We found that the best‐price question has an impact on not only the first offer but also the negotiation outcome. When the buyers in our experiment asked the question, the results were not significantly different than those from negotiations in which they made the first offer. This effect was driven by the first offer in response to the question. Additionally, we found that the best‐price question did not negatively impact the relational outcome. Moreover, the effect was reduced when list price information was available. These findings suggest rethinking the traditional view of the offer‐counteroffer sequence and provide an alternative opening tactic to making the first offer in the context of high information asymmetry.

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Section: Role Of the First Offermentioning

confidence: 71%

Section: Introductionmentioning

confidence: 99%

“What is Your Best Price?”—An Experimental Study of an Alternative Negotiation Opening

Lipp¹,

Kesting²,

Smolinski³

2023

Negotiation Journal

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“…The experimenter introduced the ID number as a randomly generated one, and the participants were asked to write the number in the top-right corner of their answer sheet. This ID number was really used in order to invoke the anchoring effect based on the research of Kristensen and Gärling (1997).…”

Section: Methodsmentioning

confidence: 99%

The Effect of Colour on the Anchoring Heuristic in Consumer Decision Making

2014

Journal of European Psychology Students

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The purpose of our research was to investigate the effect of colour on cognitive processing styles in social decision-making situations. The present research investigated the effect of colour on estimating the price of a gift for a social target. Two colours, blue and red, were provided as environmental cues, and the motivation for a decision was manipulated, by varying the target person's level of attractiveness in a presentation slide during a gift-purchasing simulation. A blue background with low motivation resulted in the anchoring effect, meaning that participants used heuristic processing. However, for a blue background with high motivation and red backgrounds with both high and low motivational levels, participants were not influenced by any anchoring effect. The results indicated that the effect of colour on cognitive style interacted with the motivational level, the attractiveness of the photo target. The theoretical implications, evolutionary explanation, and ideas for further research are also discussed.

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“…In the buyer-seller simulated experiment that Kristensen and Gärling conducted, participants' counteroffers are directly related to proposed selling prices (anchor point) and reservation prices (reference point) (Kristensen & Gä rling, 2000). In the experiment, business students acted as condominium buyers.…”

Section: Application 1: Price Negotiationmentioning

confidence: 99%

The Effect of Anchoring on Economic Decision-Making

Xu¹

2022

BCPBM

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The anchoring effect is a cognitive heuristic that influences human decision-making processes. People consistently perceive the initially available information as an anchor and use this reference point to form decisions. However, decision-makers' over-reliance on anchors causes them to falsely believe the information they perceive without further thought. This paper explains the definition, underlying mechanism, and applications of anchoring. For methodology, the paper uses qualitative research to illustrate examples of anchoring in different scenarios. To conclude, even though the automatic generation of heuristics is difficult to detect, it is important to understand the way anchoring affects economic decisions in advance. The research results of this paper have practical contributions and far-reaching implications. Different from the mathematical analysis method, the case analysis method more accurately reflects the importance of anchoring in real life environment. In addition, some people have prejudices about the anchoring effect. This paper can bring enlightenment to people and help them better understand the way in which anchoring facilitates the generation of economic gains and losses.

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Untitled

Cited by 73 publications

References 23 publications

“What is Your Best Price?”—An Experimental Study of an Alternative Negotiation Opening

“What is Your Best Price?”—An Experimental Study of an Alternative Negotiation Opening

The Effect of Colour on the Anchoring Heuristic in Consumer Decision Making

The Effect of Anchoring on Economic Decision-Making

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