Tag Archives: Bias

“Precise” Offers Provide Negotiation Advantage

Malia F Mason

Malia F Mason

Opening negotiation offers typically “anchor” the discussion and shape settlement values.
Many people make opening offers in “round” numbers like $10 instead of “precise” numbers like $9.
However, “round number offers” were less effective than “precise” offers in negotiations, found Columbia’s Malia Mason, Alice J. Lee, Elizabeth A. Wiley, and Daniel Ames.

Y Charles Zhang

Y Charles Zhang

Negotiators can improve their outcomes by specifying offers in precise values.
Precise first offers more potently anchored the negotiation range than round number proposals, and people who proposed precise offers were perceived as more confident, credible, and “well-informed” regarding actual value.

Norbert Schwartz

Norbert Schwartz

Similarly, consumers have less confidence in precise estimates when they doubt the communicator, found University of Michigan’s Y. Charles Zhang and Norbert Schwarz of University of Southern California.

A drawback of precise offers is that some co-negotiators perceive them as “inflexible.
Despite this risk, people who received precise offers generally made more conciliatory counter-offers, leading to smaller adjustments and more favorable final settlements.
Precise offers also led to better final deals even when the negotiator opened with a less ambitious precise offer.

Martin Schweinsberg

Martin Schweinsberg

Another benefit of precise offers is that they are less likely to be seen as aggressive or greedy by a co-negotiator, according to INSEAD’s Martin Schweinsberg collaborating with Gillian Ku and Madan M. Pillutla of London Business School’s and Cynthia S. Wang of Oklahoma State University.
Ambitious first offers may lead an impasse or stalled progress toward settlement if a negotiation partner takes offense or walks away from talks.

Gillian Ku

Gillian Ku

This risk of stalled negotiation increases if negotiators see themselves in a lower-power position and receive an extreme offer.
These negotiators can be more willing to end negotiations,

Manoj Thomas

Manoj Thomas

Precise offers may obscure their actual value, found Cornell’s Manoj Thomas and Vrinda Kadiyali with Daniel H. Simon of Indiana University.
Buyers underestimated the size of precise prices, particularly under uncertain conditions:  U.S. homebuyers paid more when list prices were precise, and volunteers said they would follow this strategy in buying a home.

Vrinda Kadiyali

Vrinda Kadiyali

Precise offers provide some of the benefits of favorably anchoring negotiation discussions while reducing risks of “offensive” extreme offers.

-*How effective have you found “precise” opening offers in achieving your negotiation goals?

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Ethnic Diversity Reduces “Groupthink,” Economic “Bubbles”

Most people are unlikely to trust recommendations and evaluations from people of different ethnic groups.

Sheen Levine

Sheen Levine

However, this bias may reduce the “herd mentality” that characterized price “bubbles” in U.S. housing and global financial markets, reported Columbia’s Sheen S. Levine, Evan P. Apfelbaum of MIT, Goethe University’s Mark Bernard, Texas A&M’s Valerie L. Bartelt, Edward J. Zajac of Northwestern, and University of Warwick’s David Stark.
They concluded that, “Diversity facilitates friction that enhances deliberation and upends conformity.”

Economic “bubbles” occur when the majority of traders set inaccurate prices, probably influenced by a type of  “groupthink.
This cognitive error results in a mismatch between market prices and true asset values.

Irving Janis

Irving Janis

Groupthink can occur when three conditions interact, according to Yale’s Irving Janis:

  • Group Cohesiveness
    • Deindividuation” occurs when group belonging becomes more important than individual dissenting views,
  • Group Structure
    • Homogeneity of group’s social backgrounds and ideology,
    • Group insulation from feedback,
    • Lack of impartial leadership,
    • Lack of norms to conduct systematic analysis and clearly structured decision procedures,
  • Context
    • Stressful external threats,
    • Recent failures,
    • Decision-making difficulties,
    • Moral dilemmas.

      Scott E. Page

A wider range of viewpoints leads to less groupthink and more balanced decisions in a mathematical model developed by University of Michigan’s Scott E. Page and Lu Hong of Loyola University.

Diverse groups ran into fewer “dead ends” when they developed solutions than did groups comprised of individuals who tended to think similarly.

David A. Thomas

David A. Thomas

Likewise, Georgetown’s David A Thomas and Robin J. Ely of Harvard confirmed that identity-diverse groups can outperform homogeneous groups
summarized in a formula:

Collective Accuracy = Average Accuracy + Diversity.

To test the impact of group diversity on market “bubbles,” Levine’s group constructed experimental markets in Singapore and Texas, USA, in which participants traded stocks to earn money.

Evan Apfelbaum

Evan Apfelbaum

More than 175 volunteers with backgrounds in business or finance were randomly-assigned to groups of six ethnically-homogeneous or ethnically- diverse participants.

Traders knew the ethnic composition of their groups, but they couldn’t communicate with each other.
In addition, their “trades” of dividend-paying stock were anonymous.

Homogeneous groups set inflated selling prices, yet traders in those groups bought the stock, resulting in increasing stock prices.

Mark Bernard

Mark Bernard

In contrast, traders in diverse groups refused inflated selling prices, so the stock price fell to approximately the price in an “ideal” market with “rational” traders.

When traders and other decision-makers come from similar ethnic, social, and attitudinal backgrounds, they tend to place undue confidence in others’ opinions, and tend not to subject them to rigorous analysis.

Valerie Bartelt

Valerie Bartelt

As a result, people in homogeneous may be more likely to accept prices and deals that deviate from actual underlying values.
Levine’s group concluded that “homogeneity…imbues people with false confidence in the judgment of coethnics, discouraging them from scrutinizing behavior.”

  • How do you mitigate “groupthink” in organizational decision-making?

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Acknowledge Potential Employer “Concerns” about Gender, Attractiveness to Get Job Offer

Although attractive people enjoy many advantagesattractive women applying for jobs in traditionally male jobs face a double disadvantage: gender and appearance.

Madeline Heilman

Madeline Heilman

The “beauty is beastly effect” is a hiring bias favoring men or less attractive women for “masculine” jobs, first described by Yale University’s Madeline E. Heilman and Lois R. Saruwatari.

Lois Suruwatari

Lois Suruwatari

They found that attractiveness was an advantage for men seeking managerial and non-managerial roles, but attractive women had an advantage only when seeking lower-level, non-managerial roles.

Michelle Hebl

Michelle Hebl

Attractiveness and gender can be considered a “stigma,” just as disability, obesity, and race.
Rice University’s Michelle R. Hebl and Robert E. Kleck of Dartmouth College reported that people in these categories can reduce hiring biases by acknowledging their “stigmatizing” characteristic during the interview.

Robert Kleck

Robert Kleck

In addition, women who proactively addressed the employers potential concern about gender or appearance in a traditionally male role were rated higher in employment suitability in a study by University or Colorado’s Stefanie K. Johnson and Traci Sitzmann, with Anh Thuy Nguyen of Illinois Institute of Technology.

Stefanie Johnson

Stefanie Johnson

These candidates were assumed to possess more positive “masculine” traits than other female candidates and evaluators were less likely to penalize these women for behaving in contrast to traditional gender role norms.

Traci Sitzmann

Traci Sitzmann

Attractive women’s pre-emptive communication favorably influenced rater’s evaluations of employment suitability.
This proactive approach buffered the impact “hostile sexism” while increasing “benevolent sexism’s” link to employment suitability ratings.

-*How effective you found “pre-emptive objection-handling” in workplace negotiations?

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Negotiation Drama: Strategic Umbrage, Line-Crossing Illusion, and Assertiveness Biases

Daniel R Ames

Daniel R Ames

Optimally matching assertiveness style to specific situations can determine success in negotiations, according to Columbia University’s Daniel Ames and Abbie Wazlawek.

Abbie Wazlawek

Abbie Wazlawek

Earlier, Ames and Stanford’s Frank Flynn reported that moderate levels of assertiveness are associated with career advancement, and with effective negotiation and influence in conflict situations.
They also found that observers provided consistent ratings of managerial under-assertiveness and over-assertiveness.

Francis Flynn

Francis Flynn

However, most people do not accurately assess others’ evaluation of their assertiveness in specific situations.
Over-assertive individuals tend to have less-accurate self-perception than less assertive people, and both groups experience “self-awareness blindness.
These inaccurate self-perceptions may develop from polite yet inaccurate feedback from others, which provides faulty information.

More than 80% of participants reported that they had expressed greater objections than they actually felt to influence the negotiation partner, and said they observed exaggerated objections by their negotiation partners.

Daniel Ames Assertiveness

Self-awareness resulted in most favorable negotiation outcomes: More than 80% of negotiators rated by others and by themselves as “appropriately assertive in the situation” negotiated greatest value to both parties.

Ames Assertiveness U CurveStrategic umbrage also appeared effective:  People who received these intentional emotional displays from their negotiation partners were more likely to rate themselves as over-assertive in their negotiation position.
However, negotiators who applied strategic umbrage rated these self-critical negotiation partners as appropriately assertiveness.
Ames and Watzlawek called this misperception of others’ perceptions the line-crossing illusion.

This mismatch between negotiation partners’ ratings of appropriate assertiveness was linked with poorer negotiation outcomes:  Nearly 60% of negotiators who were rated as appropriately assertive but felt over-assertive (line-crossing illusion) negotiated the inferior deals for themselves and their counterparts.
This suggests that disingenuous emotional displays of strategic umbrage lead negotiation partners to seek the first acceptable deal, rather than pushing for an optimal deal.

Jeffrey Kern

Jeffrey Kern

To improve accuracy of meta-perception – other people’s perception of assertiveness style – Ames and Wazlawek suggested:

-Participate in 360 degree feedback,

-Increase skill in listening for content and meaning,

Consider whether negotiation proposals are reasonable in light of alternatives,

-Request feedback on reactions to “strategic umbrage” displays to better understand perceptions of “offer reasonableness,

-Evaluate costs and benefits of specific assertiveness styles:

Gary Yukl

Over-assertiveness may provide the benefit of “claiming value” in a negotiation but may lead to ruptured interpersonal relationships and ill-will, according to Jeffrey M. Kern of Texas A&M, SUNY’s Cecilia Falbe and Gary Yukl.

  • Consider cultural norms for assertiveness regulation in “low context” cultures like Israel, where dramatic displays are frequent and expected in negotiations.
    In contrast, “high context” cultures like Japan, require more nuanced assertiveness, with fewer direct disagreements and “strategic umbrage” displays, according to Edward T. Hall, then of the U.S. Department of State.
Edward T Hall

Edward T Hall

Likewise, under-assertiveness may minimize interpersonal conflict, but may lead to poorer negotiation outcomes and undermined credibility in future interactions, according to Ames’ related research.

To augment a less assertiveness style:

  • Set slightly higher goals,
  • Reconsider assumptions that greater assertion leads to conflict,
  • Consider that proactivity may lead to increased respect and improved outcomes,
  • Assess the outcome of collaborating with more assertive others.

To modulate a more assertiveness style:

  • Make slight concessions to increase rapport and trust with others,
  • Observe and evaluate the impact of collaborating with less assertive others.

The line-crossing illusion is an example of a self-perception bias in which personal ratings of behavior may not match other people’s perceptions, and others’ behaviors can attenuate individual confidence and assertiveness.

*How do you reduce the risk of developing the line-crossing illusion in response to other people’s displays of “strategic umbrage”?

*How do you match your degree of assertiveness to negotiation situations?

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Gender Transitions Demonstrate Continuing Gender Differences in Pay, Workplace Experience

People who change gender demonstrate the impact of gender on workplace experience and compensation, while holding constant the person’s education and experience.

Two Stanford professors’ experience in gender transition highlight findings by University of Chicago’s Kristen Schilt.

Joan Roughgarden

Joan Roughgarden – Jonathan Roughgarden

Stanford’s Joan Roughgarden, was an evolutionary biologist for more than 25 years as Jonathan Roughgarden before she made her male-to-female (MTF) transition.
Known for her work integrating evolutionary theory with Christian beliefs (“theistic evolutionism”), she reported feeling less able to make bold hypotheses and no longer had “the right to be wrong.”

Her experience contrasts with Stanford colleague, neurobiologist Ben Barres, who made scientific contributions as Barbara Barres until he was more than 40.

Barbara Barres - Ben Barres

Barbara Barres – Ben Barres

After his female-to-male (FTM) transition, Ben delivered a lecture at the  Whitehead Institute, where an audience member commented, “Ben Barres gave a great seminar today, but, then, his work is much better than his sister’s.”

Schilt surveyed FTM and MTF to compare earnings and employment experiences before and after gender transitions.
with questions similar to 2002 Current Population Survey (CPS) survey items:

  • Last job before gender transition,
  • First job after gender transition,
  • Most recent job.
Kristen Schilt

Kristen Schilt

Female-to-male transsexuals (FTMs) reported that as men, they received more authority, reward, and respect in the workplace than they received as women, even when they remained in the same jobs.

Height and skin color affected potential advantages enjoyed by FTM.  Tall, white FTMs experienced greater benefits than short FTMs and FTMs of color.

In contrast, MTF reported reduced authority and pay, and often harassment and termination.

University of Illinois’s Donald McCloskey, for example, was told by his department chair – “in jest” – that he could expect a salary reduction when he became Deirdre McCloskey.

Deirdre McCloskey

Deirdre McCloskey

However, salary reduction was no joke for MTFs in Schilt’s survey sample.
Participants reported significant losses of 12% in hourly earnings after becoming female.

Additionally, MTFs transitioned on average 10 years later than FTMs, delaying the loss of labor market advantages attributable to male gender.

FTMs, however, experienced no change in earnings or small positive increases up to 7.5% in earnings after transitioning to becoming men.

Any gender transition was associated with risks of harassment and discrimination, reported more frequently in “blue-collar” jobs, particularly for those with “non-normative” appearance and not consistently “passing” as the other gender.

These “naturalistic experiments” confirm continuing gender-based pay discrepancies.

-*To what extent have you observed these gender-linked differences in compensation and workplace credibility?

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Mindfulness Meditation Improves Decisions, Reduces Sunk-Cost Bias

Sigal Barsade

Sigal Barsade

Andrew Hafenbrack

Andrew Hafenbrack

Sunk-cost bias” is the prevalent tendency to continue unsuccessful actions after time and money have been invested.
Frequent examples include:

  • Holding poorly-performing stock market investments,
  • Staying in abusive interpersonal relationships,
  • Continuing failing military engagements.
Zoe Kinias

Zoe Kinias

In these cases, people tend to focus on past behaviors rather than current circumstances, leading to emotion-driven decision biases.

Brief meditation sessions can help decision makers consider factors beyond past “sunk costs,” reported Wharton’s Sigal Barsade, with Andrew C. Hafenbrack and Zoe Kinias of INSEAD.

Meditation practices can:

  • Enable increased focus on the present moment,
  • Shift attention away from past and future actions,
  • Reduce negative emotions.
Kirk Brown

Kirk Brown

Barsade, Hafenbrack, and Kinias asked volunteers to complete Mindful Attention Awareness Scale, a widely used assessment developed by Virginia Commonwealth University’s Kirk Brown and Richard Ryan of University of Rochester.

Richard Ryan

Richard Ryan

They also measured participants’ ability to resist “sunk cost” bias using Adult Decision-Making Competence Inventory, developed by Leeds University’s Wändi Bruine de Bruin with Baruch Fischhoff of Carnegie Mellon and  RAND Corporation’s Andrew M. Parker.

Wändi Bruine de Bruin

Wändi Bruine de Bruin

In a decision task, participants could choose to take an action or to do nothing, as a measure of sunk-cost bias.
Taking action indicated resistance to the sunk-cost bias, whereas those who took no action were seen as influenced by the sunk-cost bias.

Baruch Fischhoff

Baruch Fischhoff

Volunteers who listened to a 15-minute focused-breathing guided meditation were more likely to choose action, resisting sunk-cost bias, than those who had not heard the meditation instruction.

Andrew M Parker

Andrew M Parker

Barsade’s team noted that, “People who mediated focused less on the past and future, which led to them experiencing less negative emotion. That helped them reduce the sunk-cost bias.

Jochen Reb

Jochen Reb

Mindful attention also enables negotiators to craft better deals by “claiming a larger share of the bargaining zone” in distributive (“fixed pie”) negotiations, found Singapore Management University’s Jochen Reb, Jayanth Narayanan of National University of Singapore, and University of California, Hastings College of the Law’s Darshan Brach.
These effective negotiators also expressed greater satisfaction with the bargaining process and outcome. 

Jayanth Narayanan

Jayanth Narayanan

Mindful attention also leads to a lower negativity bias, the tendency to weigh pessimistic information more heavily than positive, reported Virginia Commonwealth University’s Laura G. Kiken and Natalie J. Shook of West Virginia University.

The team assessed negativity bias with BeanFest, a computer game developed by Shook, with Ohio State’s Russell Fazio and J. Richard Eiser of University of Sheffield.

Natalie Shook

Natalie Shook

Participants associated novel stimuli with positive or negative outcomes during attitude formation exercises.

Russell Fazio

Russell Fazio

Volunteers who listened to a mindfulness induction correctly classified positive and negative stimuli more equally, expressed greater optimism, and demonstrated less negativity bias in attitude formation than those in the control condition.

J Richard Eiser

J Richard Eiser

Mindful attention improves decision-making and enhances negotiation outcomes by reducing biases linked to negative emotions.
As a result, taking a brief mental break (“time-out”) during decision-making can improve choices and reduce the likelihood that “let the wrong emotions cloud the decision-making process.”

-*How do you reduce bias in making decisions and crafting negotiation proposals?

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Transference in Everyday Life Biases Memory, Emotions

-*Ever catch yourself re-enacting scenarios from your past, but with different people?

Sigmund Freud

Sigmund Freud

 Sigmund Freud described this experience as “transference,” redirecting feelings toward one person onto a different individual in the present.

The current recipient of feelings may have different characteristics, motivations, and behaviors than the original person, but something about the present individual triggers a repeat of earlier feelings and actions.

Susan Andersen

Susan Andersen

NYU’s Susan Andersen and Alana Baum demonstrated transference in lab studies when they asked volunteers for descriptions of important people in their lives for whom they had positive feelings or negative feelings.
To contrast the results, Andersen and Baum also presented descriptions of other people’s significant others.

Later, Anderson and Baum described a person seated next door, using either the emotionally-positive or emotionally-negative descriptions of someone from the volunteer’s life or someone else’s life.

Participants more accurately recalled the stranger’s description when it resembled their own significant other.
Recall was enhanced because the salient features of the significant other’s description were memorable when assigned to a new person, suggesting transference.

In addition, biased inference and memory are based on “accessibility” and distinctiveness of the earlier triggering memory, according to Anderson’s collaborators Steve W. Cole and Noah Glassman.

Transference is an outgrowth of attachment to others in the past, according to Queens College’s Claudia Chloe Brumbaugh and R. Chris Fraley University of Illinois.

R. Chris Fraley

R. Chris Fraley

In their research, participants learned about two potential dating partners:  One description resembled a romantic partner from the person’s past, whereas another description matched another participant’s former partner.

These volunteers reported feeling both less avoidant and more anxious toward potential dating partners described as similar to previous significant others.
Brumbaugh and Fraley noted that participants “applied attachment representations of past partners” to any potential future partner, but to a greater extent when the new partner was described as resembling an important past partner.

Susan Fiske

Earlier, Princeton’s Susan Fiske described this transfer of affective responses to a new individual as schema-triggered affect.
Andersen used this framework and a socio-cognitive explanation in a paper with Berkeley’s Serena Chen.

Serena Chen

Serena Chen

People modify views of themselves and others in transference situations, found Katrina Hinkley and Andersen.
Volunteers also demonstrated biased recall of details about a new person when a representation of an earlier significant other was activated.
Participants’ list of the new person’s attributes changed on re-test to include elements of the self when the participant had been with the former significant person.

Michael Kraus

Michael Kraus

Transference occurs even when a target person possesses an attribute incompatible with the significant other’s characteristics, found University of Illinois’s Michael W. Kraus with Berkeley’s Chen, Victoria A. Lee, and Laura D. Straus.

Participants demonstrated transference in biased memories and judgments about a person they perceived as similar to a former significant other.

This effect was manipulated to elicit positive impressions even when the target was from an ethnic out-group, suggesting ways to reduce stigma and discrimination by evoking positive transference from past experiences to present actors.

Baum and Anderson observed that participants’ transient mood was more positive when the target of their transference resembled their own significant other and occupied a similar role to the original person.

These findings suggest that transference in the workplace can be problematic when employees react to one another as they responded to others from the past, introducing unconscious emotional elements to work situations.

-*How do you manage transference reactions in work and social situations?

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