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.