The Objective Value of Subjective Value: A Multi-Round Negotiation Study


Jared Curhan, MIT Sloan School of Management, 50 Memorial Drive E52-554, Cambridge, MA 02142-1347. E-mail:


A 2-round negotiation study provided evidence that positive feelings resulting from one negotiation can be economically rewarding in a second negotiation. Negotiators experiencing greater subjective value (SV)—that is, social, perceptual, and emotional outcomes from a negotiation—in Round 1 achieved greater individual and joint objective negotiation performance in Round 2, even with Round 1 economic outcomes controlled. Moreover, Round 1 SV predicted the desire to negotiate again with the same counterpart, whereas objective negotiation performance had no such association. Taken together, the results suggest that positive feelings, not just positive outcomes, can evoke future economic success.