On why we avoid negotiating with David Hunsaker, Hong Zhang, and Alice Lee
In this episode, we talk with David A. Hunsaker, Hong Zhang, and Alice J. Lee, authors of the paper “Beyond Propensity: Thresholds, Costs, and Interventions in Negotiation Avoidance,” about why people often choose not to negotiate, even when negotiation could benefit them. The conversation begins with the origins of their research project on negotiation avoidance, a phenomenon that is both common and surprisingly underexamined. Starting from a relatable observation that even negotiation scholars sometimes avoid negotiating, we ask why people decide not to negotiate at all, before they ever reach the bargaining table. We discuss the paper’s finding that negotiation avoidance is widespread: more than 95% of participants reported avoiding negotiation in at least some situations, and people avoided negotiation up to 51% of the time. The episode explores why studying the decision to initiate negotiation is just as important as studying what happens once people are already engaged in the negotiation itself. The authors introduce two key concepts from the paper. The first is Threshold for Negotiation Initiation, which refers to the point at which a person decides that negotiation is “worth it.” We examine how people make that decision, including the role of percentage-based thinking: the same dollar savings may feel more or less worthwhile depending on the total price of the item. The second concept is Willingness to Pay to Avoid Negotiation. We explore the striking finding that nearly half of participants were willing to pay extra to avoid negotiating, and consider what people may really be trying to avoid: time, discomfort, conflict, embarrassment, or the fear of seeming inappropriate. The episode also looks at the tension revealed in the car-buying scenario: many people preferred having the possibility of negotiation, yet later said they would pay to avoid actually doing it. This opens a broader discussion of the cognitive, emotional, and social barriers that keep people from initiating negotiations. Finally, we discuss the interventions tested in the paper. A financial comparison showing that negotiation could be worth more per hour than a person’s usual wage did not significantly increase negotiation initiation, while a social norm intervention, showing that negotiation is common, did. The conversation considers why financial logic may not be enough, why social permission matters, and what practical advice the authors would give to consumers, employees, managers, and negotiation educators. We close by asking what future research should explore next in understanding when, why, and how people decide to negotiate.