Reactive Devaluation: In Theory & Practice REACTIVE DEVALUATION In Theory & Practice Handouts www.viaconflict.com “Reactive Devaluation: In Theory & Practice” @ ACR 2014 The post links to a PDF of the Presentation Presented by M. Ryan O'Connell | ACR 2014 | www.viaconflict.com 1 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 2 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 3 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 4 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 5 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 6 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 7 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 8 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 9 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 10 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 11 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 12 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 13 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 14 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 15 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 16 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 17
© Copyright 2024