The Impact of Time Pressure in Negotiation: A Meta‐analysis

Abstract

In negotiation, pressures to reach an agreement are assumed to influence both the processes and the outcomes of the discussions. This paper meta-analytically combined different forms of time pressure to examine its effects on negotiator strategy and impasse rate. High time pressure was more likely to increase negotiator concessions and cooperation than low pressure as well as make agreements more likely. The effect on negotiator strategy, however, was stronger when the deadline was near or when negotiations were simple rather than complex. The effects were weaker when the opponent was inflexible and using a tough negotiation strategy. The effects on cooperative strategies were weaker when incentives for good performance were available than when they were not. Although time pressure in negotiation has significant effects, situational factors play a major role on its impact.

Puttin' on the Ritz: Pre-Ipo Enlistment of Prestigious Affiliates as Deadline-Induced Remediation

“…For example, companies with abundant prestige (i.e., scarcity of prestige one standard deviation below the mean) that hired prestigious executives 12 months prior to IPO registration paid $129,000 per executive, on average, whereas 1 month prior to IPO registration those companies paid $180,000 per prestigious executive. This result is consistent with prior research demonstrating that deadlines influence behavior (Gersick, 1988(Gersick, , 1994Staudenmayer et al, 2002) and that when one party in a negotiation faces a deadline that the other does not, it gives the less constrained party some bargaining leverage (Stuhlmacher et al, 1998).…”

“…Running low on time, these firms are not able to generate significant pools of prestigious candidates whom they can court and engage in extended or careful negotiations. Indeed, these pressured firms may feel the need to bid relatively liberally for prestigious executives' services, given that they are at a general disadvantage in negotiating with such individuals because of the lack of time to start another search if turned down (Stuhlmacher et al, 1998). All the while, of course, the prestigious executive knows that he or she has a great deal of leverage, as his or her credentials are in short supply and are urgently needed by such firms.…”

Coping with time pressure in interfirm supply chain relationships

“…Others suggest that time pressure impacts negotiation outcomes by reducing the ambition and goals of negotiators (Pruitt & Drews, 1969). In terms of processes, time pressure changes negotiation strategy (Stuhlmacher et al, 1998), reduces the accuracy of communications (Yukl, Malone, Hayslip, & Pamin, 1976), and leads to only selective use of information (Stuhlmacher et al, 1998). Moreover, high time pressure has been shown to increase perceptions of opponent toughness (Smith, Mitchell, & Beach, 1982), decrease perceptions of opponent honesty (Baron, 1988), and increase perceptions of feeling rushed (Carnevale & Lawler, 1986).…”

“…The literature on negotiations suggests that time pressure has significant effects on the outcomes, processes, and attitudes of negotiations (Stuhlmacher, Gillespie, & Champagne, 1998). Some propose that high time pressure limits negotiation outcomes by encouraging quicker concessions, lower demands, and quicker agreements (Carnevale & Lawler, 1986;Druckman, 1994;Lim & Murnigham, 1994).…”

Negociar en circunstancias cambiantes: los motivos sociales como moderadores del capital económico y relacional

“…The main goal of this research is to gain insight on how changing circumstances influence on one hand economic performance and on the other hand the relationships between the parties in a repeated negotiation. The effects of time in the negotiation have been extensively analyzed, focusing mainly on the time pressure (for a review see : Stuhlmacher Gillespie and Champagne, 1998), only recently has studied negotiation with a purely temporal perspective (Henderson , Trope, and Carnevale 2006;Okhuysen, Galinsky, and Uptigrove 2003;Trope and Lieberman, 2003). When negotiators negotiate a longer-term perspective, they are able to analyze the information available to a greater depth and get better agreements.…”