INSIDE INFORMATION AND NEGOTIATOR DECISION BEHAVIOR

In negotiation, information about the other party may be a source of s trength or weakness, depending on the context, the type of information , its availability and quality, and how a negotiator uses it. An empir ical study examines the way negotiators use ''inside'' information spe cifically designed to increase bargaining strength. The scoop-privileg ed information about the other party's deadline-does not inform negoti ators about possible deals; rather, it suggests a process of negotiati ng agreement. Misuse of the scoop, therefore, poses potential costs th at may diminish its possible advantages. In a two-party negotiation ex ercise, access to inside information affected negotiators' thoughts an d behaviors. It enhanced their feelings of success and shifted the cri terion for success away from final price toward a relative, interperso nal standard. Furthermore, informed negotiators used the scoop appropr iately to manage the negotiation process and enhance both joint and in dividual profits. (C) 1994 Academic Press, Inc.