Cognitive Psychology and Bargaining Behavior: Peru versus the MNCs

This paper explores the impact of cognitive images on bargaining between state policy makers and private multinational corporations (MNCs). The paper begins with a discussion of the cognitive images and presents three ideal-typical images of multinational firms as perceived by Third World hosts. It is then argued that the interaction of images of MNCs and the self prodduces distinct bargaining patterns with MNCs classified in each image. The paper then presents examples of these bargaining patterns in Peruvian bargaining with MNCs during the Velasco government.