Integrative Bargaining in a Competitive Market

Cover Integrative Bargaining in a Competitive Market
Integrative Bargaining in a Competitive Market
Max H Bazerman
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Do not under any circumstances make any deals which result in total profit of less than $6, 600. At this limit, the transaction is detrimental to the overall financial welfare of the company. If you cannot reach this goal with a particular seller, you should break off negotiations since there are other firms we can deal with... " In the negative frame/constrained level condition, subjects read the following: "... Do not under any circumstances make any deals which result in expenses of more tha...n $3, 400. At this limit... " After administering a short quiz to ensure that the profit and expense schedules were understood, subjects were given final instructions prior to negotiations. For example, positively framed sellers were told: "talk to buyers and make deals which specify all three factors. That is you should propose three-letter deals in your negotiat ions ... Over al 1 net profit will be determined by summing the net profits of all the transactions that you comp lete ... Assume that market conditions are such that your firm can produce all the refrigerators that you can sell.

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