Deal or no deal? How round vs precise percentage offers and price-ending mimicry affect impasse risk in over 25 million eBay negotiations
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
Standard
in: Journal of Economic Psychology, Jahrgang 94, 102584, 01.01.2023.
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
Harvard
APA
Vancouver
Bibtex
}
RIS
TY - JOUR
T1 - Deal or no deal? How round vs precise percentage offers and price-ending mimicry affect impasse risk in over 25 million eBay negotiations
AU - Petrowsky, Hannes M.
AU - Schweinsberg, Martin
AU - Seitz, Lennart
AU - Funk, Burkhardt
AU - Loschelder, David D.
N1 - Publisher Copyright: © 2022 Elsevier B.V.
PY - 2023/1/1
Y1 - 2023/1/1
N2 - Negotiations can end with a successful deal or with an impasse. To minimize the impasse risk, how assertive and precise should negotiators’ first offers be? Recent studies diverge in their findings as to the advantages and disadvantages of making round vs precise offers. Based on over 25 million eBay negotiations, the present research establishes correlational evidence that buyer offers at round percentages of the seller's list price—for instance, exactly 50% (75%, 90%, etc.)—coincide with a markedly smaller impasse risk than offers just above (e.g., 50.1%) or just below (49.9%) these round percentages. We also find that buyers who mimic sellers’ list price precision (e.g., offering $89.95 for a product listed at $99.99) and exact price endings ($30.13 for a list price of $40.13) incur markedly smaller impasse risks. Our findings show that the effectiveness of buyers’ round vs precise offers depends on the roundness of the seller's list price, therefore extending previous research that focused on offer precision without taking the opponent's list price into account. We discuss promising avenues for future research on the interpersonal effects of offer precision and price-ending mimicry.
AB - Negotiations can end with a successful deal or with an impasse. To minimize the impasse risk, how assertive and precise should negotiators’ first offers be? Recent studies diverge in their findings as to the advantages and disadvantages of making round vs precise offers. Based on over 25 million eBay negotiations, the present research establishes correlational evidence that buyer offers at round percentages of the seller's list price—for instance, exactly 50% (75%, 90%, etc.)—coincide with a markedly smaller impasse risk than offers just above (e.g., 50.1%) or just below (49.9%) these round percentages. We also find that buyers who mimic sellers’ list price precision (e.g., offering $89.95 for a product listed at $99.99) and exact price endings ($30.13 for a list price of $40.13) incur markedly smaller impasse risks. Our findings show that the effectiveness of buyers’ round vs precise offers depends on the roundness of the seller's list price, therefore extending previous research that focused on offer precision without taking the opponent's list price into account. We discuss promising avenues for future research on the interpersonal effects of offer precision and price-ending mimicry.
KW - Impasse
KW - Mimicry
KW - Negotiation
KW - Numeric precision
KW - Offer
KW - Business informatics
KW - Management studies
KW - Business psychology
UR - http://www.scopus.com/inward/record.url?scp=85143508165&partnerID=8YFLogxK
U2 - 10.1016/j.joep.2022.102584
DO - 10.1016/j.joep.2022.102584
M3 - Journal articles
AN - SCOPUS:85143508165
VL - 94
JO - Journal of Economic Psychology
JF - Journal of Economic Psychology
SN - 0167-4870
M1 - 102584
ER -