In today’s business world, you must be tough, smart and witty in order to succeed and to satisfy your superior. Oftentimes you go into a negotiation only knowing the target price you have to achieve and not looking for a valuable compromise. Chasing only after the biggest possible share of this fixed-pie and assuming the negotiator on the other side of the table does so too, hinders you from being a successful negotiator.
Furthermore, in sales negotiations you often try to achieve the highest selling price possible and if the other party cannot agree on a price close to that point, you sell the object for the minimum price that was given to you, so you will still satisfy your superior. If you cannot not manage to sell for the minimum price, you decline the offer, stop the negotiations and chose your ‘best alternative to negotiated agreement’ (BATNA). Unfortunately, many people go into negotiations not even knowing their own BATNA. In this case, a negotiator might sell the object for a lower price than the one that could have achieved without this negotiation. Good negotiators do not only know their own BATNA, they also have an approximate idea about the BATNA of the opposing party, so they can develop their strategy based on that knowledge and will more likely succeed in the negotiation.
The outcomes of negotiations do not only depend on the alternatives of each party or the asymmetric distribution of information, but also on the communication method the parties use. Depending on the position of each party it is more efficient to use a traditional face-to-face communication method or to make use of digital support, like video-mediated communication methods (VMC, i.e. Skype, facetime, etc.).
We would like to improve (integrative) negotiation outcomes by addressing the following question: does the use of VMC lead to more pareto-efficient results in fixed-pie situations? As technology becomes more and more advanced and business is mostly conducted within global environments, the way and method of communication becomes more relevant in the everyday economy.
Our paper tries to answer this question in the following way: first, we introduce the theory of with current aspects of digitalization. From the established theory, we derive three hypotheses and present our research design. After a brief discussion of the potentials and limitations of our experiment, we close with a short summary and an outlook to potential follow-up research.
Table of Contents
- 1. Introduction
- 2. Literature Review
- 2.1. Negotiation Paradigms, Processes and Outcomes
- 2.2. Negotiation Bias and the Mythical Fixed-Pie
- 2.3. Contributing Factors & Communication Means
- 3. Hypotheses Development
- 3.1. Hypotheses 1
- 3.2. Hypotheses 2
- 3.3. Hypotheses 3
- 4. Method & Research Design
- 4.1. Experiment
- 4.2. Brief Research Design
- 5. Discussion
- 5.1. Limitations of Experiments
- 5.2. Limitations of our study
- 5.3. Potential Strengths of other methods
- 6. Conclusion
Objectives and Key Themes
This seminar thesis investigates the impact of video-mediated communication (VMC) on negotiation outcomes in fixed-pie situations. The primary objective is to determine whether VMC leads to more Pareto-efficient results compared to face-to-face communication. The research explores the influence of communication methods on negotiation success within the context of limited resources and potentially conflicting interests.
- The effect of VMC on negotiation outcomes in fixed-pie situations.
- Comparison of Pareto-efficiency between VMC and face-to-face communication.
- The role of communication methods in achieving optimal negotiation results.
- The influence of negotiation paradigms and biases on outcomes.
- The importance of understanding one's own and the opponent's BATNA (Best Alternative to a Negotiated Agreement).
Chapter Summaries
1. Introduction: This introductory chapter sets the stage by highlighting the challenges faced in modern business negotiations, particularly the pressure to achieve targets and the tendency to focus solely on maximizing one's own share in a fixed-pie scenario. It introduces the central research question: Does the use of video-mediated communication (VMC) lead to more Pareto-efficient results in fixed-pie situations? The chapter emphasizes the growing relevance of VMC in a globalized business environment and outlines the structure of the paper, which involves reviewing existing theory, developing hypotheses, presenting the research design, discussing limitations, and offering an outlook for future research.
2. Literature Review: This chapter delves into existing negotiation research, exploring various paradigms, processes, and outcomes. It differentiates between descriptive and normative research approaches, emphasizing the focus on descriptive research because Pareto-optimal outcomes are rare in reality. The chapter also examines different types of negotiation outcomes, including no agreement, compromise, win-lose agreements, and mutually beneficial win-win agreements, setting the groundwork for understanding the complexities of negotiation dynamics and the potential impact of communication methods on the final outcome. The review lays a foundation for understanding the theoretical framework within which the study operates.
Keywords
Negotiation, Video-mediated communication (VMC), Pareto-efficiency, Fixed-pie situations, Face-to-face communication, BATNA (Best Alternative to Negotiated Agreement), Negotiation paradigms, Negotiation biases, Communication methods, Interpersonal decision-making.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this academic preview?
This preview summarizes a seminar thesis investigating the impact of video-mediated communication (VMC) on negotiation outcomes, specifically in "fixed-pie" situations where resources are limited. The central question is whether VMC leads to more Pareto-efficient results (outcomes where no one can be better off without making someone else worse off) compared to face-to-face communication.
What are the key themes explored in the thesis?
Key themes include the effect of VMC on negotiation outcomes in fixed-pie situations; a comparison of Pareto-efficiency between VMC and face-to-face communication; the role of communication methods in achieving optimal negotiation results; the influence of negotiation paradigms and biases on outcomes; and the importance of understanding one's own and the opponent's BATNA (Best Alternative to a Negotiated Agreement).
What does the literature review cover?
The literature review examines existing negotiation research, exploring various paradigms, processes, and outcomes. It distinguishes between descriptive and normative research approaches, focusing on descriptive research due to the rarity of Pareto-optimal outcomes in reality. It also explores different types of negotiation outcomes (no agreement, compromise, win-lose, win-win) to understand the complexities of negotiation dynamics and the potential impact of communication methods.
What is the research methodology?
The thesis employs an experimental research design to investigate the impact of VMC on negotiation outcomes. The preview provides a brief overview of the experimental setup but doesn't detail the specific methods used.
What are the limitations discussed in the preview?
The preview mentions limitations of experiments in general and specific limitations of the conducted study. It also notes the potential strengths of other research methods that weren't employed.
What are the key hypotheses?
The preview lists three hypotheses (Hypotheses 1, 2, and 3), but their specific content is not detailed.
What is the structure of the thesis?
The thesis follows a standard structure including an introduction, literature review, hypothesis development, methodology and research design, discussion of findings, and a conclusion. The preview includes chapter summaries outlining the content of each section.
What are the keywords associated with this research?
Keywords include: Negotiation, Video-mediated communication (VMC), Pareto-efficiency, Fixed-pie situations, Face-to-face communication, BATNA (Best Alternative to a Negotiated Agreement), Negotiation paradigms, Negotiation biases, Communication methods, Interpersonal decision-making.
- Citation du texte
- Marius Kohmann (Auteur), 2018, The Effect of video-mediated communication on negotiations in fixed-pie situations. A comparison of pareto-efficiency with face-to- face communication, Munich, GRIN Verlag, https://www.grin.com/document/455744
