Journal article
Ambiguity and liability negotiations: The effects of the negotiators′ role and the sensitivity zone
Organizational behavior and human decision processes, Vol.54(2), pp.277-298
03/01/1993
DOI: 10.1006/obhd.1993.1013
Abstract
This research applies the Einhorn-Hogarth ambiguity model to a two-party negotiation situation involving medical liability cases. In the first study, subjects who were assigned to the role of a defendant or a plaintiff in a medical liability case altered their out-of-court settlement offers according to the estimated likelihood of winning the case at trial, the amount of ambiguity associated with that estimate, and the importance of the case (p < .05). As predicted by the Einhorn-Hogarth model, the effect of ambiguity on defendant subjects facing a potential loss differed (p < .05) from its effect on plaintiff subjects facing a potential gain. The second study used the model to show that increasing the amount of ambiguity in negotiation situations can make the potential for a settlement less sensitive to parties having substantially different perspectives of their chances of winning at trial. These predictions were supported in an actual negotiation context. When each party had a very different estimate of the plaintiff winning the trial (p = .20 vs p .80), there were two to five times more settlements when there was much ambiguity than when there was little ambiguity (p < .001). These results provide further support for the Emhorn-Hogarth ambiguity model. They also show that contrary to popular belief, increasing ambiguity in a negotiation context can increase the likelihood of a negotiated settlement.
Details
- Title: Subtitle
- Ambiguity and liability negotiations: The effects of the negotiators′ role and the sensitivity zone
- Creators
- Cynthia S. Fobian - University of IowaJay J.J. Christensen-Szalanski - Department of Management and Organizations and Center for Health Services Research, University of Iowa, United States
- Resource Type
- Journal article
- Publication Details
- Organizational behavior and human decision processes, Vol.54(2), pp.277-298
- DOI
- 10.1006/obhd.1993.1013
- ISSN
- 0749-5978
- eISSN
- 1095-9920
- Number of pages
- 22
- Language
- English
- Date published
- 03/01/1993
- Academic Unit
- Management and Entrepreneurship
- Record Identifier
- 9984962553502771
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