Chapter 6
Perception, Cognition, and Emotion
Overview
We begin the chapter by examining how psychological perception is related to the process of negotiation, with particular attention to forms of perceptual distortion that can cause problems of understanding and meaning making for negotiators. We then look at how negotiators use information to make decisions about tactics and strategy—the process of cognition. Our discussion here pursues two angles. First, we focus on framing. Second, we discuss the various kinds of systematic errors, or cognitive biases, in information processing that negotiators are prone to make and that may compromise negotiator performance. This section will also consider how negotiators can manage misperceptions and cognitive biases in order to maximize strategic advantage and minimize their adverse effects.
Social encounters are, however, more than just occasions for perception and cognition. We experience and express emotion when we interact with others and negotiating is certainly no exception. In the final major section of this chapter, we discuss the role of moods and emotions in negotiation—both as causes of behavior and as consequences of negotiated outcomes.
Learning Objectives
1. Perception – the process by which individuals connect to their environment.
2. Framing.
3. Cognitive biases in negotiation.
4. Mood, emotion, and negotiation.
1. Perception
1. Perception defined.
1. Perception is the process by which individuals connect to their environment, by ascribing meaning to messages and events. This process is strongly influenced by the perceiver’s current state of mind, role and comprehension of earlier communications.
2. Perception is a complex physical and psychological process of screening, selecting and interpreting stimuli so that they have meaning to the individual.
3. Perception is a “sense-making” process where people interpret their environment so they can respond appropriately.
B. Perceptual distortion.
1. A perceiver’s own needs, desires, motivation and personal experiences may create a predisposition about the other party. This can lead to biases and errors in perception and subsequent communication.
a) Stereotyping – occurs when one individual assigns attributes to another solely on the basis of the other’s membership in a particular social or demographic category.
1. Highly resistant to change.
2. Commonly used as a resort during conflicts involving values, ideologies, and direct competition for resources.
b) Halo effects occur when people generalize about a variety of attributes based on the knowledge of one attribute of an individual.
(1) Research shows halo effects are most likely to occur in perception.
1. Where there is very little experience with a person along some dimension.
2. When the person is well known.
3. When the qualities have strong moral implications
c) Selective perception occurs when the perceiver singles out certain information that supports or reinforces a prior belief and filters out information that does not confirm that belief.
d) Projection occurs when people assign to others the characteristics or feelings that they possess themselves. Projection usually arises out of a need to protect one’s own self-concept— to see oneself as consistent and good.
2. Framing
A frame is the subjective mechanism through which people evaluate and make sense out of situations, leading them to pursue or avoid subsequent actions.
A. Types of Frames.
A. Substantive—what the conflict is about. Parties taking a substantive frame have a particular disposition about the key issue or concern in the conflict.
B. Outcome—a party’s predisposition to achieving a specific result or outcome from the negotiation.
3. Aspiration—a predisposition toward satisfying a broader set of interests or needs in negotiation.
4. Process—how the parties will go about resolving their dispute.
5. Identity—how the parties define “who they are.”
6. Characterization—how the parties define the other parties.
7. Loss–gain—how the parties define the risk or reward associated with particular outcomes.
B. How frames work in negotiation.
1. It is difficult to know what frame a party is using unless the party tells you.
2. Frames of those who hear or interpret communication may create biases of their own.
3. Linguistic analyses of negotiation transcripts provides insight into how parties define a negotiation, and how frames are used in the process:
a. Negotiators can use more than one frame.
b. Mismatches in frames between parties are sources of conflict.
c. Parties negotiate differently depending on the frame.
d. Specific frames may be likely to be used with certain types of issues.
e. Particular types of frames may lead to particular types of agreements.
f. Parties are likely to assume a particular frame because of various factors.
3. Another approach to frames: Interests, rights, and power.
1. Ury, Brett, and Goldberg (1988) proposed an approach to framing disputes that view parties in conflict as using one of three frames:
a. Interests ̶ People are often concerned about what they need, desire, or want. People talk about their “positions,” but often what is at stake is their underlying interests.
b. Rights ̶ People may also be concerned about who is “right”—that is, who has legitimacy, who is correct, or what is fair.
c. Power ̶ Negotiations resolved by power are sometimes based on who is physically stronger or is able to coerce the other, but more often, it is about imposing other types of costs – economic pressures, expertise, legitimate authority, and so on.
2. The different frames are likely to lead to very different discussions between parties.
3. The way a party approaches the problem will likely influence how the other party responds.
D. The frame of an issue changes as the negotiation evolves.
1. The issue development approach focuses on the patterns of change (transformation) that occur in the issues as parties communicate with each other.
a. Several factors shape a frame, the negotiation context clearly affects the way both sides define the issue and conversations that the parties have with each other about the issues in the bargaining mix.
b. At least four factors can affect how the conversation is shaped:
1. Negotiators tend to argue for stock issues, or concerns that are raised every time the parties negotiate.
2. Each party attempts to make the best possible case for his or her preferred position or perspective.
3. In a more “macro” sense, frames may also define major shifts and transitions in the overall negotiation.
4. Multiple agenda items operate to shape the issue development frames.
3. Cognitive Biases in Negotiation
A. Irrational escalation of commitment.
A. An “escalation of commitment” is the tendency for an individual to make decisions that stick with a failing course of action.
B. Escalation of commitment is due in part to biases in individual perception and judgment.
B. Mythical fixed-pie beliefs.
1. Many negotiators assume that all negotiations involve a fixed pie.
2. Those w
