Abstract:

In this research, we investigated how power symmetry and power asymmetry affect impasse rate and ethically questionable decision making in fixed-sum negotiation with small bargaining zone. In supply chain context, number of alternative negotiating partners plays a major role to create power differences in negotiation. To increase the external validity, we conducted a simulated negotiation experiment by using the number of alternative negotiating partners instead of Best Alternatives To a Negotiated Agreement (BATNA) to manipulate power status. In the experiment, power status of both sides would be provided in form of complete information while the remaining information was still imperfect. Results showed power (a)symmetry had a significant effect in terms of impasse rate. However, in most cases, no significant effect of power (a)symmetry was found on ethically questionable decision making.