Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Don’t Worry, be Angry – Marketing Study Shows Angry Negotiators Walk Out with a Better Deal

08.12.2009
Professor Teck-Hua Ho’s wife loved a particular painting and wanted to buy it. Ho advised her not to appear excited – to disguise her emotions – in front of the salesperson.

After an hour or so, Ho walked out of the store with the $380 painting – for only $120. Negotiation, Ho knows, is an art, too. In new research conducted with Assistant Professor Eduardo Andrade, Ho finds deflating – or inflating – one’s emotions can be a winning strategy.

Ho and Andrade are the co-authors of “Gaming Emotions in Social Interactions” – the lead article in the December 2009 issue of The Journal of Consumer Research. The paper reveals that people strategically “game” emotions to achieve the desired outcome of a negotiation.

Ho is marketing group chair and Andrade is an assistant marketing professor at the University of California, Berkeley’s Haas School of Business.

Ho and Andrade hypothesized, first, that people would strategically display anger when given the opportunity to do so, and second, that the strategy might actually increase the angry person’s payoff in the negotiation. “To do so, we created a paradigm that allowed us to precisely measure the gap, if any, between real and expressed emotions, as well as to test the actual financial consequences of the ‘emotion gaming’ strategy,” says Ho.

In the Haas School’s xLab, a social science laboratory, the researchers divided subjects into random groups: the proposers and the receivers. One proposer and one receiver were paired as partners, but they remained anonymous to each other during the games.

They began with a “dictator game.” Ho and Andrade gave $10 to each proposer and instructed him/her to divide the money with the respective partner. Both players knew the receiver had to accept any offer. All proposers chose to keep a larger share of the pie. Receivers were then asked to report their current level of anger on a 101-point scale. On average, receivers reported a relatively mild level of anger.

Next, the researchers launched the “ultimatum game,” where the same players were paired together. Again, the proposer decided how to divide the pot. This time, the receiver could either accept or decline the offer. If he said, “no deal” - neither proposer nor receiver would receive any portion of the $10. Most importantly, just before the proposer sent the offer, researchers told the receiver to report (again) his or her current level of anger. Researchers told only half of the receivers that this second report would be sent to the proposer before he made his decision on how to divide the pie.

The study found when receivers knew that their level of anger would be reported to proposers before the latter made a decision, receivers significantly inflated their current level of anger—that is, they “gamed” their emotions. Moreover, the strategy paid off. Angrier receivers extract a larger share of the pie from the paired proposers. One participant said, “I did it on purpose in order to be treated more fairly.”

Ho explains, “This equates to ‘This is my final offer, take it or leave it.’ The proposer knows he caused the receiver to be angry in the dictator game. That’s the key. That’s why the proposer is willing to make a better offer in the ultimatum game.”

However, Ho notes this was a one-shot test, and faking one’s emotion continuously may not produce the same favorable results. He compares the experiment to an eBay transaction between an occasional buyer and seller in which there is no concern for reputation because the transaction is anonymous.

A subsequent experiment provided further evidence that successful “emotion gaming” is contingent on the credibility of the inflated emotion. “When proposers believed that the receivers’ report of anger was credible, they offered a higher share to angrier receivers. When proposers noticed that the receivers could be pretending to be angrier than she or he really was, they completely disregarded their partner’s expressed feelings,” says Andrade.

Finally, Ho and Andrade attempted to test whether emotion is more influential than plain information. This time, receivers could rate the offer by how angry it made them feel or how much the offer fell below their expectations. Most chose to report their anger. Displays of anger, the study suggests, are more effective than displays of inflated expectation because they are possible precursors to acts of irrationality or vindictiveness, which in this experiment could result in a rejection of the offer and both sides leaving empty-handed. The researchers reasoned an exaggerated show of anger might scare the proposer into thinking that the receiver would reject the offer altogether. Instead of risking that, the proposer made a more generous offer.

“We are not suggesting people should always appear angry to get what they want, “cautions Ho, “People naturally move their emotional state in a calculated way to get what they want. It might not always be anger. Sometimes we must act happy to get something even when we’re not feeling happy.”

As for Ho, he says his work has given him a new perspective on the art of bargaining. “Now when I go to a negotiation and people become angry, I am personally more able to appreciate the person’s motive.”

Full paper: http://faculty.haas.berkeley.edu/hoteck/PAPERS/Andrade-Ho2.pdf

Pamela Tom | Newswise Science News
Further information:
http://www.haas.berkeley.edu

More articles from Business and Finance:

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: A “cosmic snake” reveals the structure of remote galaxies

The formation of stars in distant galaxies is still largely unexplored. For the first time, astron-omers at the University of Geneva have now been able to closely observe a star system six billion light-years away. In doing so, they are confirming earlier simulations made by the University of Zurich. One special effect is made possible by the multiple reflections of images that run through the cosmos like a snake.

Today, astronomers have a pretty accurate idea of how stars were formed in the recent cosmic past. But do these laws also apply to older galaxies? For around a...

Im Focus: Visual intelligence is not the same as IQ

Just because someone is smart and well-motivated doesn't mean he or she can learn the visual skills needed to excel at tasks like matching fingerprints, interpreting medical X-rays, keeping track of aircraft on radar displays or forensic face matching.

That is the implication of a new study which shows for the first time that there is a broad range of differences in people's visual ability and that these...

Im Focus: Novel Nano-CT device creates high-resolution 3D-X-rays of tiny velvet worm legs

Computer Tomography (CT) is a standard procedure in hospitals, but so far, the technology has not been suitable for imaging extremely small objects. In PNAS, a team from the Technical University of Munich (TUM) describes a Nano-CT device that creates three-dimensional x-ray images at resolutions up to 100 nanometers. The first test application: Together with colleagues from the University of Kassel and Helmholtz-Zentrum Geesthacht the researchers analyzed the locomotory system of a velvet worm.

During a CT analysis, the object under investigation is x-rayed and a detector measures the respective amount of radiation absorbed from various angles....

Im Focus: Researchers Develop Data Bus for Quantum Computer

The quantum world is fragile; error correction codes are needed to protect the information stored in a quantum object from the deteriorating effects of noise. Quantum physicists in Innsbruck have developed a protocol to pass quantum information between differently encoded building blocks of a future quantum computer, such as processors and memories. Scientists may use this protocol in the future to build a data bus for quantum computers. The researchers have published their work in the journal Nature Communications.

Future quantum computers will be able to solve problems where conventional computers fail today. We are still far away from any large-scale implementation,...

Im Focus: Wrinkles give heat a jolt in pillared graphene

Rice University researchers test 3-D carbon nanostructures' thermal transport abilities

Pillared graphene would transfer heat better if the theoretical material had a few asymmetric junctions that caused wrinkles, according to Rice University...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Ecology Across Borders: International conference brings together 1,500 ecologists

15.11.2017 | Event News

Road into laboratory: Users discuss biaxial fatigue-testing for car and truck wheel

15.11.2017 | Event News

#Berlin5GWeek: The right network for Industry 4.0

30.10.2017 | Event News

 
Latest News

NASA detects solar flare pulses at Sun and Earth

17.11.2017 | Physics and Astronomy

NIST scientists discover how to switch liver cancer cell growth from 2-D to 3-D structures

17.11.2017 | Health and Medicine

The importance of biodiversity in forests could increase due to climate change

17.11.2017 | Studies and Analyses

VideoLinks
B2B-VideoLinks
More VideoLinks >>>