Effects of explanations and precise anchors on salary offers.

Two studies were conducted which examined explanations and precise anchors on counteroffers and perceptions in a salary negotiation. Study 1 found that precise offers reduced counteroffers compared to round offers, but explanations focused on internal equity concerns or external equity concerns had no effect on counteroffers. Study 2 also found that precise offers reduced counteroffers compared to round offers. Explanations, which were manipulated to focus on constraint or disparagement rationales, failed to affect counteroffers, but a constraint explanation led to higher attributions of competence compared to a disparagement explanation or no explanation. These results suggest that precise offers are an effective tactic for reducing counteroffers and that explanations are relatively unimportant. Further research is needed to determine under what conditions an explanation may improve or harm negotiation outcomes.