Articles producció científica> Economia

On the first-offer dilemma in bargaining and negotiations

  • Identification data

    Identifier: imarina:6138910
    Handle: http://hdl.handle.net/20.500.11797/imarina6138910
  • Authors:

    Osorio, Antonio
  • Others:

    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 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: 2023-02-19
    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: http://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
  • Keywords:

    Applied Psychology,Arts and Humanities (Miscellaneous),Computer Science Applications,Decision Sciences (Miscellaneous),Developmental and Educational Psychology,Economics,Economics, Econometrics and Finance (Miscellaneous),Social Sciences (Miscellaneous),Social Sciences, Mathematical Methods
    Second-mover advantage
    Perspective-taking
    Opposite
    Model
    Information gains
    Information
    First-offer dilemma
    Experts
    Disadvantage
    Bargaining and negotiation
    Anchors
    Anchoring effects
    1st offers
    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
    Decision sciences (miscellaneous)
    Decision sciences (all)
    Computer science applications
    Ciencias sociales
    Ciencias humanas
    Arts and humanities (miscellaneous)
    Applied psychology
    Administração, ciências contábeis e turismo
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