Why can’t we settle again? Analysis of factors that influence agreement prospects in the post-settlement phase

Johannes Gettinger (), Michael Filzmoser () and Sabine T. Koeszegi ()
Additional contact information
Johannes Gettinger: University of Hohenheim
Michael Filzmoser: Vienna University of Technology
Sabine T. Koeszegi: Vienna University of Technology

Journal of Business Economics, 2016, vol. 86, issue 4, No 5, 413-440

Abstract: Abstract Negotiators often settle for inefficient agreements and therefore potentially leave substantial value at the bargaining table. Scholars recommend the use of a post-settlement negotiation and its support to give negotiators the opportunity to engage in Pareto-improvement steps. While negotiators can only benefit from reaching a post-settlement agreement, prior research reports low agreement-rates in post-settlement negotiations. This study identifies factors that potentially influence the likelihood of reaching a post-settlement agreement. Based on a laboratory experiment, we show that the prospects of reaching a post-settlement agreement depend on the gender of the negotiators, their mutual understanding in terms of language proficiency, their engagement in the post-settlement phase and the ‘integrativeness’ of the initial agreement. Furthermore, our results show that during post-settlement activities, negotiators seem to focus rather on an extension than on a reallocation of welfare gains. The results of this study provide a better understanding of negotiation behavior, theoretical and practical implications and assistance to designers of negotiation support systems for improving the fit between users’ requirements and available support functionalities.

Keywords: Negotiation; Post-settlement phase; Post-settlement agreement; Process analysis (search for similar items in EconPapers)
JEL-codes: C70 C88 C92 M10 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s11573-016-0809-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jbecon:v:86:y:2016:i:4:d:10.1007_s11573-016-0809-5

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11573

DOI: 10.1007/s11573-016-0809-5

Access Statistics for this article

Journal of Business Economics is currently edited by Günter Fandel

More articles in Journal of Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().