Heuristics and biases as sources of negotiators’ errors in the pre-negotiation phase. Review of literature and empirical research

Abstract

Purpose – Heuristics and biases are simplifying strategies that people (in the analysed issue – negotiators) use in the decision-making process, even when they can take advantage of supporting tools (e.g. Negotiation Support System), which will allow them to make the optimal choice [Wachowicz, 2006]. Many empirical studies have found that decision makers use heuristics and are biased [Bateman, Zeithaml, 1989; Jackson, Dutton, 1988; Kahneman et al. 1982; Zajac, Bazerman, 1991]. Therefore, the question should be asked: are negotiators, like managers (whose decisions were examined), instead of consciously and intentionally using tools supporting decision-making during negotiations, subject to heuristics and cognitive errors? As a consequence of this general question one may ask the specific research questions: (1) What heuristics do the negotiators undergo? (2) How do heuristics influence the decision-making process? (3) How can the impact of heuristics and biases be minimized by taking advantage of negotiation support tools? Research methods – The article is a review of psychological, sociological and management sciences theories, concepts and empirical researches on heuristics and biases. The review was made according to the following categories: (a) theories that recognize the inevitability of heuristics in the decision-making process, (b) theories that attempt to identify opportunities to minimize or even reduce the impact of heuristics on decisions, and (c) those that offer alternative solutions. Results – The summary highlights those heuristics which might occur in the decision-making process in the pre-negotiation phase. Originality/value – There is no research exploring the role of specific heuristics and biases in particular stages of negotiations.