EFFECTS OF GAIN LOSS FRAMES IN NEGOTIATION - LOSS AVERSION, MISMATCHING, AND FRAME ADOPTION

Extending research and theory on negotiator frame-the conceptualizatio n of outcomes as gains or as losses-this study assumes that (a) negoti ators often have foreknowledge about their opponent's gain or loss fra me, and (b) during negotiation, disputants often communicate about the ir own frame. We considered negotiator cognition and behavior as a fun ction of own frame, foreknowledge about opponent's frame, opponent's c ommunicated frame, and their interactions. As predicted, the opposing negotiator was perceived as more cooperative under other's loss than g ain frame. Further, negotiators mismatched their opponent's concession s, in that they made smaller concessions when the adversary had a loss rather than gain frame. Results also supported the ''frame-adoption h ypothesis'' that other's communicated gain frame leads to lower demand s and larger concessions than other's communicated loss frame, especia lly when negotiators have a gain rather than loss frame themselves. As predicted, this frame-adoption effect was attenuated when other's com municated frame was incongruent rather than congruent with the informa tion about other's frame. Together, these findings underscore the rele vance of considering negotiator frames from an interpersonal perspecti ve. (C) 1994 Academic Press, Inc.