Negotiating Daily Life
Perspectives UW (Autumn, 1992)
(vol. 4 (1), p. 13).

Leigh Thompson
(center) provides 
instructions as two
students begin a
negotiation
experiment. Photo 
by Mary Levin.
Two people have one orange to share. How should they divide it? Should they slice the orange in half? That is the obvious solution but not necessarily the best one, says Leigh Thompson, associate professor of psychology. Thompson is studying the negotiation process to explore how people can achieve their goals in a variety of business and personal situations. 

"Many people think that negotiation goes on only in board rooms," says Thompson, ‘but in reality people negotiate every day, whether it is to decide how to divide an orange, who is going to do the dishes, or where to go on vacation. Unfortunately, people often pass up opportunities for reaching mutually beneficial agreements. My research looks at why people fail to reach these solutions and how they can improve their negotiating." 

In her laboratory, Thompson pairs students to negotiate with each other after providing them with background information about their role in a negotiation situation. They might, for example, be asked to assume the roles of an employer and a potential employee negotiating salary, medical package, vacation, and other items. "We’re able to measure how well both students do as compared to how well they could have done," says Thompson, "and we analyze where they went wrong." 

Thompson finds that many negotiations are not as successful as they might be because the participants arrive with faulty assumptions about the other person’s position. "In one study, I included some issues for which students had the same preferences---things that would have been profitable for both," Thompson says. "A significant amount of the time, people failed to realize this and ended up with an agreement that was not desirable for either person. They sold themselves short because they assumed that the other person’s position would be at odds with their own." 

Thompson finds that another stumbling block in negotiation is the "fixed pie perception"-the belief that there is a fixed amount of resources that must be divided in a win or lose fashion. ‘When people view negotiation this way, they tend to focus on how to get something or take something from the other person," says Thompson. "I’m trying to get people to see that they can expand the pie in a mutually beneficial way." 

Consider the shared orange. It may be that one person wants the orange for its juice while the other wants the rind for baking. By dividing the orange in half, both people are less satisfied. But if they communicate about their preferences, they can both come away with a much better solution. "A lot of negotiation is about thinking creatively," says Thompson. ‘That is hard to do if you come into a situation thinking only about protecting your position." 

In 1991, Thompson received a Presidential Young Investigator Award from the National Science Foundation for further study of negotiation. The award encourages matching donations from businesses and private donors. "I am especially interested in building ties between academia and business," says Thompson. "Students in our universities are the next generation of business leaders. Our research will help people learn to create added value for themselves and the organizations to which they belong."  

 

 


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