Impact of knowledge regarding alternatives to settlement in dyadic negotiations: Whose knowledge counts?

Abstract

Study I examined whose knowledge of a best alternative to the negotiated agreement (BATNA) produces documented benefits. The results suggest that (a)joint gain and the number of integrative trade-offs increase when the actor with the alternative is made aware of the alternative and (b) the actor with the alternative obtains a marginal increase in personal gain only when both negotiators (i.e., both the actor and the opponent) are aware of the actor's alternative. Study 2 explored changes in actor and opponent cognitions that result when each is informed about the actor's alternative. Results suggest that the existence of an attractive alternative changes actor and opponent walk away point ( often referred to as reservation point), perception of efficacy regarding negotiation skill, perceived value of the commodity being negotiated, and distribution of power.