Extremely difficult negotiator goals: Do they follow the predictions of goal-setting theory?

Traditional goal-setting theory has been applied extensively in negotiation research. We examine one of the major tenets of the theory that has yet to be tested in the negotiation context, the argument that goals that are challenging yet attainable result in optimal performance. Specifically, we test whether goals set substantially beyond challenging yet attainable result in either plateaued or decreased objective negotiation outcomes. Across two studies, our results indicate that goals that are extremely difficult, beyond the challenging yet attainable level set forth in goal-setting theory, produce greater negotiated outcomes. We propose that this effect occurs because of the counter-intuitive notion that negotiators possessing insufficient information have a key advantage over well-informed negotiators.

► How do extremely difficult goals affect negotiated outcomes?
► Negotiators with little information may have an advantage over more informed negotiators by virtue of being less informed.
► Results of two studies show that extremely high goals result in greater performance.
► These results are counter to the research on goal setting in general.