Myopic perception of having a deadline in negotiations: An anchoring effect due to question order

• Main Authors: AU, Al K. C., LAU, Ivy Yee-Man
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: anchoring; deadline; myopic perception; negotiation; Social Psychology
• Online Access: https://ink.library.smu.edu.sg/soss_research/2003
• Institution: Singapore Management University

In negotiations, people tend to perceive a deadline as more detrimental to themselves than to their opponents. This phenomenon is termed myopic perception. The present research proposes that myopic perception can be understood as a result of an anchoring effect due to the question order used in probing the perception of a deadline. When people estimate deal prices before rating the influence of a deadline, their judgements are anchored on their negotiation outcomes, making their perception egocentric, which leads to myopic perception. As a result, myopic perception was hypothesized to be reduced by reversing the above question order to change the respondents' judgement anchor from negotiation outcomes to negotiation procedures. In Study 1, myopic perception disappeared when participants rated the general influence of a deadline before estimating deal price in a negotiation scenario. In Study 2, pairs of participants negotiated under a tight deadline. Myopic perception of a deadline was manipulated before the negotiation. Dyads without myopic perception had a smaller discrepancy in reservation price. However, myopic perception had no effect on impasse rates or final deal prices. The results are discussed with respect to behavioural forecasting and practical implications of myopic perception.