But what if i lose the offer?

Negotiators’ inflated perception of their likelihood of jeopardizing a deal

Einav Hart, Julia B. Bear, Zhiying (Bella) Ren

OBHDP 181 2024 104319

https://www.sciencedirect.com/science/article/abs/pii/S0749597824000116?via%3Dihub

Keywords:

Likelihood of jeopardizing a deal

Negotiation misperceptions

Negotiation mental models

Job negotiations

Negotiation avoidance

ABSTRACT

When deciding whether to negotiate, individuals typically assess any potential costs of negotiation. We propose that one major cost that individuals are concerned about, particularly in the context of job offers, is an offer being withdrawn from the bargaining table—losing out on a deal entirely. We refer to this heretofore unexamined concern as the perceived likelihood of jeopardizing a deal by negotiating. We investigate job candidates’ perceived likelihood of jeopardizing a deal, as compared to hiring managers’ reports, across seven studies (total N = 3,338), including surveys of academic job candidates and members of academic hiring committees, managers and hiring professionals, and experimental studies with interactive, incentivized negotiations conducted both in person and online. We consistently document that job candidates’ perception of the likelihood of jeopardizing a deal is exaggerated, i.e., discrepant with that of the hiring side. In some cases, this perception is associated with negotiation avoidance. We also theorize and find support for two underlying psychological mechanisms: zero-sum perceptions and psychological power. We further document contextual factors that decrease candidates’ zero-sum perceptions or increase their perceived power, which, in turn, diminish (but do not fully eliminate) the discrepancy between candidates’ and managers’ perceptions of the likelihood of jeopardizing a deal.