Working Paper: CEPR ID: DP13417
Authors: Antonio Cabrales; Pablo Braasgarza; Guillermo Mateu; Angel Sánchez; Angela Sutan
Abstract: We study experimentally the impact of pre-play social interactions on negotiations. Theseinteractions are often complex. Thus, we attempt to isolate the impact of several of its morecommon components: conversations, food, and beverages, which could be alcoholic or nonalcoholic.To do this, our subjects take part in a standardized negotiation (complex and simple)under six conditions: without interaction, interaction only, and interactions with water, wine,water and food and wine and food. We find that none of the treatments improve the outcomesover the treatment without interactions. We also study trust and reciprocity in the same context.For all-male groups, we find the same lack of superiority of interaction treatments over nointeraction. For all-female groups, some very simple social interactions have a positive impact ontrust.
Keywords: negotiation; trust; business meals; social interactions
JEL Codes: C91; M11; I18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| preplay social interactions (C92) | negotiation outcomes (C78) |
| preplay social interactions (for male groups) (C92) | trust levels (Z13) |
| preplay social interactions (for female groups) (C92) | trust levels (Z13) |