Negotiation Inaction Inertia: A Dynamic Model of the Impact of Missed Opportunities on Negotiation Decisions in Multi-issue Disputes

Negotiations aimed at resolving international disputes often end in deadlock. In the current article, we focus on deadlocks triggered by missed opportunities. The consequences of missing an advantageous opportunity have been studied extensively in the field of psychology within the context of the inaction inertia effect. The concept was recently introduced into the negotiation literature. Forgoing an attractive action opportunity creates vulnerability to regret and increases the likelihood of forgoing subsequent inferior opportunities, even if they still have positive value. The current article deepens the applicability of inaction inertia to international negotiations, by adopting a new multi-step multi-issue paradigm, which better approximates real-life negotiations. Using the new platform, we demonstrate the inaction inertia effect in a dynamic negotiation setting and link an individual’s inertia mindset to the experience of regret. The methodology and analysis presented will help researchers and practitioners explain inertia-induced deadlocks, and facilitate interventions that expedite successful resolutions.