The Effects of Anchor Points and Reference Points on Negotiation Process and Outcome

The mechanism of non-numerical anchoring heuristic based on magnitude priming: is it just the basic anchoring effect in disguise?

“…If the listing price was high, the house was appraised as more valuable than the same house but with a lower listing price. This effect can be also observed in areas such as clinical judgments (Friedlander & Stockman, 1983), negotiations (Kristensen & Garling, 1997) or expectancy of return in the stock market (Kaustia, Alho, & Puttonen, 2008). What is then, the psychological mechanism that underlies judgment based on the anchoring heuristic?…”

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“…Similarly, the existence of a social relationship between the negotiators is likely to lead to more agreements and less impasses (Moore et al 1999;Pesendorfer and Koeszegi 2007). When a negotiator views the initial offer as a gain and not a loss, the negotiation is more likely to reach agreement and less likely to lead to an impasse (Kristensen and Garling 1997). Chandler and Judge (1998) found the chief negotiator who was higher in the organization was less likely to reach an impasse.…”

An empirical investigation of framing effects in negotiations: A study of single‐family home sales

“…Given the nature of the local market at the time when the data were collected, this "get at least what I paid for it" reference point was not mentioned by informants in the preliminary phases of the study. Alternative reference points used in home selling situations include market values, reservation and aspiration prices, or previously paid prices (Kahneman, 1992;Kristensen & Gärling, 1997a, 1997bRitov, 1996;Van Poucke & Buelens, 2002).…”