Reactive Devaluation: In Theory & Practice
REACTIVE DEVALUATION
In Theory & Practice
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“Reactive Devaluation: In Theory & Practice”
@ ACR 2014
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Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Objectives
What is Reactive Devaluation?
What influences Reactive
Devaluation?
How do we manage Reactive
Devaluation?
WHAT IS REACTIVE
DEVALUATION?
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Defining Reactive Devaluation
“A proposal can look
less desirable than it
otherwise would
merely because a
counterpart offered
it. This phenomenon
is known as ‘Reactive
Devaluation.’”
Reactive Devaluation Research
US-USSR Disarmament Proposal Study
The Experiment
• 1986 sidewalk survey of a
nuclear disarmament
proposal
• Participants were variously
told that the same
proposal was devised by
the US, the USSR, or a
group of neutral strategy
analysts
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Reactive Devaluation Research
US-USSR Disarmament Proposal Study
The Results
• 90% supported the proposal
when Reagan was the author
• 80% supported the proposal
when the neutral strategy
analysts were the author
• 44% supported the proposal
when Gorbachev was the
author
Talking Reactive Devaluation
“I have had a philosophy for
some time in regard to SALT,
and it goes like this: The
Russians will not accept a
SALT treaty that is not in
their best interests, and it
seems to me that if it is in
their interests, it can’t be in
our best interest.”
–
U.S. Congressman Floyd Spence of
South Carolina on the Strategic
Arms Limitation Talks (SALT)
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Defining Reactive Devaluation
“Reactive Devaluation in
a negotiation refers to
the fact that the very
offer of a particular
proposal or concession especially if the offer
comes from an
adversary - may diminish
its apparent value or
attractiveness in the eyes
of the recipient.”
Reactive Devaluation Research
Stanford University’s Divestment Proposal Study
The Experiment
• Stanford University students were
asked to evaluate the magnitude of
two proposals the university was
considering for divesting of holdings in
South African companies
• Students were told the university
supported one of two plans or the
university had not decided which plan
to support
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Reactive Devaluation Research
Stanford University’s Divestment Proposal Study
The Results
• The experiment supported the Reactive
Devaluation hypothesis not because
Stanford was considered an adversary
but because Stanford supported one
plan and not the other
• Students consistently ranked the “nonoffered” plan as a greater concession
from the university in both surveys and
experiments
Talking Reactive Devaluation
“Please accept my
resignation. I don’t
care to belong to any
club that will have me
as a member.”
- Groucho Marx's telegram to
the Friar's Club of Beverly Hills
to which he was a member
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Defining Reactive Devaluation
Reactive Devaluation,
“result[s] from the
dynamics of the
negotiation process itself,”
and means “the evaluation
of specific package deals
and compromises may
change when they are put
on the table, especially if
they have been offered or
proposed by one’s
adversary.”
Reactive Devaluation Research
Professor-Student Negotiation Study
The Experiment
• Participants, who were
graduate students, were asked
to review a scenario involving
a dispute between a professor
and a graduate student
• Participants then evaluated
one of two offers made by the
professor to resolve the
dispute
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Reactive Devaluation Research
Professor-Student Negotiation Study
The Results
• The experiment tied the
US/USSR survey and the
Stanford survey/experiment
together to show that Reactive
Devaluation is not dependent
on a adversary but increases in
magnitude when the parties’
relationship is adversarial
Talking Reactive Devaluation
“We should
whatever the
opposes and
whatever the
supports.”
support
enemy
oppose
enemy
- Chairman Mao
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
The Three A’s of Reactive Devaluation
1. Adversarial Relationships: An option
presented by an adversary is undesirable solely
because it was presented by an adversary
2. Asymmetrical Interests: The default
assumption often made in conflicts is that of
asymmetrical interests
3. Availability of Options: The availability of an
option affects that option’s desirability
Finding Reactive Devaluation
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
WHAT INFLUENCES REACTIVE
DEVALUATION?
Categories of Influence
Perspective
• Fixed Pie Bias
• Naive Realism
Preference
• Reactance Theory
• Aspirational Level
Protection
•
•
Loss Aversion
Social Pressure
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Perspective
• The Fixed-Pie Bias is the
notion that a gain for one
party will correspond with an
equivalent loss for the other
party
• Naive Realism “hold[s] that
people think, or simply assume
without giving the matter any
thought at all, that their own
take on the world enjoys
particular authenticity and will
be shared by other open
minded perceivers and seekers
of truth.”
Preference
• Reactance Theory suggests “the attractiveness of
options that are in danger of being lost will increase,
while the attractiveness of options thrust upon
someone by external circumstance or by another
individual will decrease.”
• Aspirational Level means that the receipt of a
specific concession or conciliatory proposal can alter
the recipient’s aspiration or comparison level
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Protection
• Loss Aversion describes,
“the fact that the averseness
of a given loss tends to be
greater than the
attractiveness of a gain of
the same objective
magnitude.”
• Social Pressure suggests,
“When a compromise is
proposed in the context of
a social or political struggle,
it inevitably becomes the
object of pointed debate
and propagandizing.”
Spotting Bias
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
HOW DO WE MANAGE
REACTIVE DEVALUATION?
The Mediator’s Proposal
• One of the most frequently
cited techniques for managing
reactive devaluation is
obtaining the services of a
Mediator
• Based on the literature
reviewed, the mediator’s
ability to make proposals as a
neutral not subject to the
parties’ devaluation was
primary reason mediation is
cited as a viable means of
addressing Reactive
Devaluation
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
Reality Testing
By helping parties evaluate
a proposal in terms of
their own interests and
alternatives, a mediator
may be able to counteract
the tendency toward
Reactive Devaluation.
-Adapted from Beyond Winning:
Negotiating to Create Value in Deals
and Disputes
Concession Management
• Creating and
Ranking
Concession Menus
• Discussion of
Issues Prior
Bargaining
• Acknowledgement
with Concessions
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
In Conclusion
Reactive Devaluation arises from the Availability of Options,
Adversarial Relationships, and the perception of
Asymmetrical Interests
Reactive Devaluation is influenced by several factors related to
the party's Perspective (Fixed Pie Bias & Naive Realism),
Preference (Reactance Theory & Aspirational Level), and/or
need for Protection (Loss Aversion & Social Pressure)
Reactive Devaluation can managed through a number of
techniques including: The Mediator’s Proposal, Reality
Testing, and Concession Management
Question and Answer
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
References
Defining Reactive Devaluation (Description #1)
•
Jared Curhan, Margaret Neale, and Lee Ross, “Dynamic valuation: Preference changes in the context of face‐to‐face negotiation,” Journal of Experimental Social Psychology 40 (2004)
Reactive Devaluation Research: U.S. ‐ U.S.S.R. Arms Reduction Study
•
David A. Hoffman, “Mediation and the Art of Shuttle Diplomacy,” Negotiation Journal (July 2011)
•
Randall Kiser, Beyond Right and Wrong: The Power of Effective Decision Making for Attorneys (Springer: 2010)
•
Lee Ross, "Reactive Devaluation in Negotiation and Conflict Resolution," in Barriers to Conflict Resolution (W. W. Norton & Company: 1995)
Defining Reactive Devaluation (Floyd Spence)
•
Barry Goldman, The Science of Settlement: Ideas for Negotiators (ALI‐ABA: 2008)
Defining Reactive Devaluation (Description #2)
•
Arno R. Lodder and John Zelenznikow, Enhanced Dispute Resolution Through the Use of Information Technology (Cambridge University Press: 2010)
Reactive Devaluation Research: Stanford University’s Divestment Study
•
Robert Mnookin, Scott Peppet, and Andrew Tulumello, Beyond Winning: Negotiation to Create Value in Deals and Disputes (Belknap Press: 2004)
•
Randall Kiser, Beyond Right and Wrong: The Power of Effective Decision Making for Attorneys (Springer: 2010)
•
Lee Ross, "Reactive Devaluation in Negotiation and Conflict Resolution," in Barriers to Conflict Resolution (W. W. Norton & Company: 1995)
Defining Reactive Devaluation (Marx)
•
"Groucho Marx," Wikipedia.com, Last Modified June 19, 2014, http://en.wikiquote.org/wiki/Groucho_Marx
Defining Reactive Devaluation (Description #3)
•
Lee Ross, “Dealing with Conflict: Experiences and Experiments,” in The Scientist and the Humanist: A Festschrift in Honor of Elliot Aronson, ed. Marti Hope Gonzales et al (Psychology Press: 2010)
References
Reactive Devaluation Research: Professor‐Student Negotiation Study
•
Randall Kiser, Beyond Right and Wrong: The Power of Effective Decision Making for Attorneys (Springer: 2010)
Defining Reactive Devaluation (Mao)
•
Barry Goldman, The Science of Settlement: Ideas for Negotiators (ALI‐ABA: 2008)
Perspective
•
Fixed Pie Bias ‐ Deepak Malhotra and Jeremy Ginges, “Beyond Reactive Devaluation: Implementation Concerns and Fixed‐
pie Perceptions Involving the Geneva Accords” (paper presented at the 18th Annual Conference of the International Association for Conflict Management, Seville, Spain, June 12‐15, 2005)
•
Fixed Pie Bias ‐ Barry Goldman, The Science of Settlement: Ideas for Negotiators (ALI‐ABA: 2008)
•
Fixed Pie Bias ‐ Max H. Bazerman , Jared R. Curhan , Don A. Moore and Kathleen L. Valley, “Negotiation,” Annual Review of Psychology (2000)
•
Naive Realism ‐ Daniel Y. Lin, Emily Pronin, and Lee Ross, “The Bias Blind Spot: Perceptions of Bias in Self Versus Others,” Personality and Social Psychology Bulletin 28 (2002)
•
Naive Realism ‐ Max H. Bazerman , Jared R. Curhan , Don A. Moore and Kathleen L. Valley, “Negotiation,” Annual Review of Psychology (2000)
Preference
•
Reactance Theory ‐ Jared Curhan, Margaret Neale, and Lee Ross, “Dynamic valuation: Preference changes in the context of face‐to‐face negotiation,” Journal of Experimental Social Psychology 40 (2004)
•
Reactance Theory ‐“Several Examples of Reactance Research,” Pilgrim's Guide to Skip Beck's Courses, Appalachian State University. Last Accessed May 15, 2014, http://www1.appstate.edu/~beckhp/reactance.htm
•
Reactance Theory ‐ Anca M. Miron and Jack W. Brehm, “Reactance Theory – 40 Years Later,” Zeitschrift für Sozialpsychologie
(2006)
•
Aspirational Level ‐ Lee Ross, "Reactive Devaluation in Negotiation and Conflict Resolution," in Barriers to Conflict Resolution (W. W. Norton & Company: 1995)
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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Reactive Devaluation: In Theory & Practice
References
Protection
•
Loss Aversion ‐ Lee Ross, "Reactive Devaluation in Negotiation and Conflict Resolution," in Barriers to Conflict Resolution (W. W. Norton & Company: 1995)
•
Loss Aversion ‐ Marti Hope Gonzales, Carol Tavris, Joshua Aronson, The Scientist and the Humanist: A Festschrift in Honor of Elliot Aronson,(Psychology Press: 2011)
•
Loss Aversion ‐ Eldar Shafir, The Behavioral Foundations of Public Policy, (Princeton University Press: 2013).
•
Social Pressure ‐ Lee Ross, "Reactive Devaluation in Negotiation and Conflict Resolution," in Barriers to Conflict Resolution (W. W. Norton & Company: 1995)
The Mediator’s Proposal
•
Lee Ross, "Reactive Devaluation in Negotiation and Conflict Resolution," in Barriers to Conflict Resolution (W. W. Norton & Company: 1995)
•
Carrie Menkel‐Meadow, “Why Hasn’t the World Gotten to Yes? An Appreciation and Some Reflections,” Negotiation Journal (October 2006)
•
Dwight Golann, Mediating Legal Disputes: Effective Strategies for Neutrals and Advocates (American Bar Association: 2009)
•
David A. Hoffman, “Mediation and the Art of Shuttle Diplomacy,” Negotiation Journal (July 2011)
Reality Testing
•
Robert Mnookin, Scott Peppet, and Andrew Tulumello, Beyond winning: Negotiation to create value in deals and disputes
(Belknap Press: 2004)
•
Alan Stitt, Mediation: A Practical Guide (Routledge: 2004)
Concession Management
•
Laurence Boulle, Michael T. Colatrella (Jr.), and Anthony P. Picchioni, Mediation: Skills and Techniques (LexisNexis: 2008)
•
Randall Kiser, Beyond Right and Wrong: The Power of Effective Decision Making for Attorneys (Springer: 2010)
•
Marti Hope Gonzales, Carol Tavris, Joshua Aronson, The Scientist and the Humanist: A Festschrift in Honor of Elliot Aronson
(Psychology Press: 2011)
Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com
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