Mere physical distance and integrative agreements: When more space improves negotiation outcomes

We examined the effects of negotiating non-face-to-face with someone that is physically nearby versus faraway on integrative (mutually beneficial) agreements. Across Studies 1 and 2, we found that individuals who negotiated with another person that they believed was physically faraway (several thousand feet away) rather than nearby (a few feet away) attained more integrative agreements (higher joint outcome, more Pareto efficient agreements). In Study 3, we found that the effect of different magnitudes of physical distance between negotiators on integrative agreements depended on negotiators' construal level: individuals who negotiated with another person who was purportedly farther away achieved more integrative agreements when their level of construal was not constrained, but had no effect when they adopted a high-level of construal. The implications for non-face-to-face communication are discussed.