Are Two Better Than One? Bargaining Behavior and Outcomes in an Asymmetrical Power Relationship

Many consumer transactions are characterized by bargaining between parties holding unequal power positions. The group polarization hypothesis suggests that the effects of group size will differ for high- and low-power bargainers. Accordingly, power position and size of bargaining unit (one, two) were manipulated in a threat-vulnerable 2 × 2 game. Factor effects on economic performance, communication style, and post-bargaining attitudes were examined at the unit and system levels. Supporting the group polarization hypothesis, two-person groups tend to magnify the power manipulation—i.e., group size interacts with power position on post-bargaining attitudes and system performance.