Pay to walk away: Prevention buyers prefer to avoid negotiation

Shaul Shalvi, Gaby Reijseger, Michel J.J. Handgraaf, Kirstin C. Appelt, Femke S. ten Velden, Mauro Giacomantonio, Carsten K.W. De Dreu

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

In bargaining, buyers aim to spend as little money as they can on the items they seek to purchase. Compared to promotion-oriented people, prevention-oriented people seek to avoid losses rather than to secure gains. Employing different negotiation scenarios, three lab experiments tested the prediction that prevention-oriented buyers would thus display higher negotiation aversion than promotion-oriented buyers. Results showed that prevention-oriented people in the role of a potential buyer were willing to accept lower monetary compensation to refrain from entering the negotiation and were more likely to exit the negotiation when such an opportunity was presented to them. We discuss these findings and their contribution to our understanding of how regulatory focus influences consumers' economic decisions.

Original languageEnglish
Pages (from-to)40-49
Number of pages10
JournalJournal of Economic Psychology
Volume38
DOIs
StatePublished - 1 Oct 2013
Externally publishedYes

Keywords

  • Endowment effect
  • Negotiation
  • Regulatory focus

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