The power of phantom alternatives in negotiation: How what could be haunts what is

Publication date: March 2019Source: Organizational Behavior and Human Decision Processes, Volume 151Author(s): Robin L. Pinkley, Donald E. Conlon, John E. Sawyer, Dustin J. Sleesman, Don Vandewalle, Maribeth KuenziAbstractWe examine the notion of a Phantom BATNA – a negotiation alternative that may or may not materialize – and its impact on a current negotiation. Across three studies, we investigate the impact of such alternatives on negotiation, and compare them to when negotiators have a certain BATNA, when they have no BATNA, or when they are provided no information whatsoever regarding a BATNA. We demonstrate that perceptions of power mediate the effects of BATNA likelihood on the performance-related outcomes (final settlements or counter-offers) of negotiators. We establish these effects when the alternative has a known or an unknown likelihood of occurring. Additionally, BATNA likelihood influences the extent to which negotiators mention the possibility of an alternative to their counterpart during the negotiation. Based on our investigation, we offer BATNA likelihood as an important dimension of BATNA influence that can enhance theoretical and practical understanding, and stimulate future research.

Source: Organizational Behavior and Human Decision Processes - January 7, 2019 Category: Psychiatry & Psychology Source Type: research