Author, as appears in the article.: Osorio, Antonio;
Department: Economia
URV's Author/s: Osório da Costa, António Miguel
Keywords: Second-mover advantage Perspective-taking Opposite Model Information gains Information First-offer dilemma Experts Disadvantage Bargaining and negotiation Anchors Anchoring effects 1st offers
Abstract: In bargaining and negotiations, should one make the first offer or wait for the opponent to do so? Practitioners support the idea that moving first in bargaining is a mistake, while researchers find strong evidence that first-movers benefit from an anchoring effect. This paper addresses these issues from a theoretical perspective for the first time in the literature. It is found that first-movers benefit from a strategic advantage, while second-movers benefit from an information advantage. Therefore, the existence of first- and second-mover advantages depends crucially on the relative strength of these two effects. In line with the experimental literature, first-mover advantages are more prevalent, but second-mover advantages appear in very reasonable and realistic bargaining situations. Among other results, it is found that second-mover advantages require the existence of high-types (patient individuals) and differences in individuals' preferences. The results also suggest a systematic first-mover advantage in contexts of great ambiguity, in which the anchoring effect of the first offer becomes the driving force.
Thematic Areas: Social sciences, mathematical methods Social sciences (miscellaneous) Social sciences (all) Psychology Psicología Philosophy Matemática / probabilidade e estatística History & philosophy of science Historia y filosofía de la ciencia General social sciences General o multidisciplinar General economics,econometrics and finance General decision sciences Filosofía Engenharias iv Economics, econometrics and finance (miscellaneous) Economics, econometrics and finance (all) Economics Economia Developmental and educational psychology Developmental an Decision sciences (miscellaneous) Decision sciences (all) Computer science applications Ciencias sociales Ciencias humanas Arts and humanities (miscellaneous) Applied psychology Administração, ciências contábeis e turismo
licence for use: https://creativecommons.org/licenses/by/3.0/es/
Author's mail: antonio.osoriodacosta@urv.cat
Author identifier: 0000-0003-3376-0164
Record's date: 2024-07-27
Papper version: info:eu-repo/semantics/submittedVersion
Link to the original source: https://link.springer.com/article/10.1007/s11238-020-09751-7
Licence document URL: https://repositori.urv.cat/ca/proteccio-de-dades/
Papper original source: Theory And Decision. 89 (2): 179-202
APA: Osorio, Antonio; (2020). On the first-offer dilemma in bargaining and negotiations. Theory And Decision, 89(2), 179-202. DOI: 10.1007/s11238-020-09751-7
Article's DOI: 10.1007/s11238-020-09751-7
Entity: Universitat Rovira i Virgili
Journal publication year: 2020
Publication Type: Journal Publications
Repositori URV