Outcome Satisfaction in Negotiation: A Test of Expectancy Disconfirmation

Abstract The post-settlement processes that occur after negotiation outcomes are known have not been extensively studied. We propose one such process model of satisfaction using expectancy disconfirmation principles. Based on measurement of profit expectations before a bargaining session, knowledge of the profit outcomes achieved, and comparison operations between the two, analysis of data obtained from 42 negotiators provided evidence for this paradigm in negotiators′ post-settlement cognition. Expectations of one′s performance and profits attained had opposite effects on disconfirmation and later satisfaction judgments. High expectations served to decrease satisfaction and high profit outcomes had the effect of increasing satisfaction via their fully mediated effects through expectancy disconfirmation. Moreover, a negotiator′s willingness to negotiate with the partner again is shown to be primarily a function of satisfaction. Implications of these findings are discussed.