Hidden persuaders: do small gifts lubricate business negotiations?
Michel Maréchal () and
Christian Thöni ()
No 227, ECON - Working Papers from Department of Economics - University of Zurich
Gift-giving customs are ubiquitous in social, political, and business life. Legal regulation and industry guidelines for gifts are often based on the assumption that large gifts potentially influence behavior and create conflicts of interest, but small gifts do not. However, scientific evidence on the impact of small gifts on business relationships is scarce. We conducted a natural field experiment in collaboration with sales agents of a multinational consumer products company to study the influence of small gifts on the outcome of business negotiations. We find that small gifts matter. On average, sales representatives generate more than twice as much revenue when they distribute a small gift at the onset of their negotiations. However, we also find that small gifts tend to be counterproductive when purchasing and sales agents meet for the first time, suggesting that the nature of the business relationship crucially affects the profitability of gifts.
Keywords: Reciprocity; gift exchange; field experiment; negotiations (search for similar items in EconPapers)
JEL-codes: D63 C93 (search for similar items in EconPapers)
Date: 2016-04, Revised 2018-05
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-pr~
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: Hidden Persuaders: Do Small Gifts Lubricate Business Negotiations? (2018)
Working Paper: Hidden Persuaders: Do Small Gifts Lubricate Business Negotiations? (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:zur:econwp:227
Access Statistics for this paper
More papers in ECON - Working Papers from Department of Economics - University of Zurich Contact information at EDIRC.
Bibliographic data for series maintained by Marita Kieser ().