Why is negotiation so difficult?

Reactive devaluation

, explained.
Bias

What is Reactive devaluation?

Reactive devaluation refers to our tendency to disparage proposals made by another party, especially if this party is viewed as negative or antagonistic. This cognitive bias can serve as a major barrier in negotiations.

Where this bias occurs

Suppose that Sarah and her next-door neighbor have an ongoing feud. Sarah finds herself exhausted, after disputing about property lines, garbage collection, noise complaints, and general upkeep for years. She knows at some point, something has to change.

One day Sarah’s neighbor knocks on her door with a proposal. He says that he won’t let garbage pile up between their houses if she moves her fence over one foot and keeps down the noise on weekdays. Sarah sees that this agreement could be helpful in some ways, but feels uncertain. She thinks, “Why would he propose this agreement if it didn’t benefit him more than her? It must be unfair. ”

Even though Sarah discussed a similar agreement with her husband the other day, she remains uneasy about her neighbor’s offering. Thus, Sarah declines the offer in order to keep the ball in her court. Her evaluation of the proposal is clouded by her opinion of her neighbor as well as her unwillingness to accept the terms proposed by another party. This is an example of reactive devaluation.

Ultimately, this bias negatively affects Sarah in the long-run and contributes to further animosity between her and her neighbor.

Sources

  1. Korobkin, R. (2006). How neutrals can overcome the psychology of disputing: The effect of framing and reactive devaluation in mediation. Alternatives to the High Cost of Litigation24(5), 83–86. https://doi.org/10.1002/alt.20127
  2. Maoz, I., Ward, A., Katz, M., & Ross, L. (2002). Reactive Devaluation of an “Israeli” vs. “Palestinian” Peace Proposal. Journal of Conflict Resolution46(4), 515–546. https://doi.org/10.1177/0022002702046004003
  3. Ross, L., & Stillinger, C. (1991). Barriers to Conflict Resolution. Negotiation Journal7(4), 389–404. https://doi.org/10.1111/j.1571-9979.1991.tb00634.x
  4. Ross, L., & Ward, A. (1995). Psychological Barriers to Dispute Resolution. In M. P. Zanna (Ed.), Advances in Experimental Social Psychology (Vol. 27, pp. 255–304). Academic Press. https://doi.org/10.1016/S0065-2601(08)60407-4
  5. Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica47(2), 263–291. https://doi.org/10.2307/1914185
  6. Kahneman, D. (2013). Thinking, Fast and Slow (1st Edition). Farrar, Straus and Giroux.
  7. Ward, A., Atkins, D. C., Lepper, M. R., & Ross, L. (2011). Affirming the Self to Promote Agreement With Another: Lowering a Psychological Barrier to Conflict Resolution. Personality and Social Psychology Bulletin37(9), 1216–1228. https://doi.org/10.1177/0146167211409439
  8. Ross, L. (1995). Reactive Devaluation in Negotiation and Conflict Resolution. In K. J. Arrow, R. D. Ros, L. Ross, R. H. Mnookin, A. Tversky, & R. Wilson (Eds.), Barriers to Conflict Resolution. W. W. Norton & Company.
  9. Mnookin, R. H. (1993). Why Negotiations Fail: An Exploration of Barriers to the Resolution of Conflict. Stanford Center on COnflict and Negotiation8, 16.

About the Authors

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Dan Pilat

Dan is a Co-Founder and Managing Director at The Decision Lab. He is a bestselling author of Intention - a book he wrote with Wiley on the mindful application of behavioral science in organizations. Dan has a background in organizational decision making, with a BComm in Decision & Information Systems from McGill University. He has worked on enterprise-level behavioral architecture at TD Securities and BMO Capital Markets, where he advised management on the implementation of systems processing billions of dollars per week. Driven by an appetite for the latest in technology, Dan created a course on business intelligence and lectured at McGill University, and has applied behavioral science to topics such as augmented and virtual reality.

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Dr. Sekoul Krastev

Sekoul is a Co-Founder and Managing Director at The Decision Lab. He is a bestselling author of Intention - a book he wrote with Wiley on the mindful application of behavioral science in organizations. A decision scientist with a PhD in Decision Neuroscience from McGill University, Sekoul's work has been featured in peer-reviewed journals and has been presented at conferences around the world. Sekoul previously advised management on innovation and engagement strategy at The Boston Consulting Group as well as on online media strategy at Google. He has a deep interest in the applications of behavioral science to new technology and has published on these topics in places such as the Huffington Post and Strategy & Business.

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