INSIDE INFORMATION AND NEGOTIATOR DECISION BEHAVIOR

In negotiation, information about the other party may be a source of strength or weakness, depending on the context, the type of information, its availability and quality, and how a negotiator uses it. An empirical study examines the way negotiators use ''inside'' information specifically designed to increase bargaining strength. The scoop-privileged information about the other party's deadline-does not inform negotiators about possible deals; rather, it suggests a process of negotiating agreement. Misuse of the scoop, therefore, poses potential costs that may diminish its possible advantages. In a two-party negotiation exercise, access to inside information affected negotiators' thoughts and behaviors. It enhanced their feelings of success and shifted the criterion for success away from final price toward a relative, interpersonal standard. Furthermore, informed negotiators used the scoop appropriately to manage the negotiation process and enhance both joint and individual profits. (C) 1994 Academic Press, Inc.