INFLUENCING MEDIATOR BEHAVIOR THROUGH BARGAINER FRAMING

Research adopting prospect theory to examine negotiator performance wa s extended to mediation. We examined whether framing negotiator payoff s in terms of gains or losses affects a mediator's behavior towards ne gotiators when the mediator has no personal frame. The use of a mediat or presents a critical test between an explanation of framing effects based on bargainers' underlying preferences for risk and a simpler exp lanation based on the psychophysical properties of perceived gains and losses. A computer-based experiment was conducted in which subjects a cted as mediators between two disputants (computer programs) in an int egrative bargaining task. As predicted subjects proposed settlements o f higher joint value when both disputants had loss fr ames than when b oth had gain frames, supporting the psychophysical explanation. Moreov er, within mixed framed disputes, subjects' proposals favored the loss -framed bargainer over the gain-framed bargainer. However, predicted i nteractions between bargainer frame and concession-making activity wer e not supported Implications of the results for real bargainers and me diators are discussed.