The invisible hand in negotiation : are individualistic orientations collectively valuable?

Abstract

This study examines how group members’ individualistic or cooperative motivational orientations impact the process and outcomes in negotiating groups. A total of 228 students participated in a three-person negotiation simulation where orientation was induced through written instructions and members were aware of each other’s orientations. Results showed that groups with only cooperative members were more satisfied with the negotiation than members of the other group compositions. Conversely, groups with only individualistic members reached higher joint outcome than groups with only cooperative members and groups with a mix in orientations. Processanalyses indicated that the individualistic groups increased their integrative activities and decreased their distributive activities towards the end of the negotiation. The results challenge the dominating view that individualistic orientations are detrimental for constructive group-process and high joint outcome.