Beyond Propensity: Thresholds, Costs, and Interventions in Negotiation Avoidance

The benefits of negotiating are well documented. However, anecdotal evidence and market trends suggest that many people choose not to negotiate when given the opportunity. Previous research has identified several contextual factors that influence the decision about whether to initiate negotiation. Across five studies involving 5,881 Americans, we seek to build upon that work by investigating the economic magnitude of negotiation avoidance. We find that 95% of individuals choose not to negotiate up to 51% of the time (Study 1). We introduce the concept of Threshold for Negotiation Initiation (TFNI), which seeks to quantify the point at which individuals believe negotiation becomes worthwhile (Study 2). We find that 49.7% of adults report a Willingness to Pay to Avoid Negotiation (WTP-AN) (Study 3). We demonstrate that both TFNI and WTP-AN are not static sums of money but are irrationally price-contingent. We test two interventions designed to encourage negotiation: comparing the value of negotiating to one’s actual hourly wage (Study 4) and manipulating the perceived social norm of negotiating (Study 5). Finally, we outline opportunities for future research to further investigate avoidance behavior and potential interventions to increase negotiation initiation.