Analogical encoding facilitates knowledge transfer in negotiation

Information learned in one situation often fails to transfer to a similarly structured situation. However, prior findings suggest that comparing two o r more instances that embody the same principle can promote abstraction of a schema that can be transferred to new situations. In two lines of researc h, we examined the effects of analogical encoding on knowledge transfer in negotiation situations. In Experiment 1, undergraduates were more likely to propose optimal negotiation strategies and less likely to propose compromi ses (a suboptimal strategy) when they received analogy training. In Experim ent 2, graduate management students who drew an analogy from two eases were nearly three times more likely to incorporate the strategy from the traini ng cases into their negotiations than were students given the same cases se parately. For both novices and experienced participants, the comparison pro cess can be an efficient means of abstracting principles for later applicat ion.