The effect of bargaining orientation and communication medium on negotiation

A controlled experiment was conducted to examine how the use of either audio or text forms of verbal communication, and the presence or absence of visual communication impacts the form, content and outcome of negotiation in a bilateral monopoly task. As hypothesized, a cooperative bargaining orientation and/or an audio mode of communication lead to a higher joint outcome. In addition, dyads whose members each received private instructions to maximise joint outcome performed better when they could see each other whereas those who received instructions to maximise individual outcome did worse. Uncertainty regarding the logical structure of the task was reduced only via verbal communication, while equivocality regarding the bargaining orientation of the negotiating parties was reduced only via visual communication