An Evaluation of Two Mediation Techniques, Negotiator Power, and Culture in Negotiation1


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    The authors gratefully acknowledge the research assistance of Rhetta Stand ifer and research funding from the Ponder Fund at the University of Missouri-Columbia.

Correspondence concerning this article should be addressed to Vairam Arunachalam, School of Accountancy, 319 Middlebush Hall, University of Missouri at Columbia, Columbia, MO 65211.


This study examines the effects of 4 factors in a mediated transfer-pricing negotiation: (a) the mediator's suggestion that negotiators have concern for the other (opposing) negotiator; (b) the mediator's proposal of moderate goals; (c) negotiator power; and (d) culture. In the simulated negotiations that were mediated by a corporate official, participants were 374 subjects from Hong Kong and the United States. Negotiators obtained lower joint outcomes when urged by the mediator to show concern for the other than when not given this admonition. When the mediator proposed moderate (vs. high) goals, the negotiators received lower joint outcomes but had a higher opinion of the mediator. While we expected negotiator power (equal vs. unequal) to interact with suggested concern for the other, it did so only for the negotiators' individual outcomes. Finally, culture produced a main effect: Hong Kong negotiators obtained higher joint outcomes than did their U. S. counterparts.