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products company to study the influence of small gifts on the outcome of business negotiations. We find that small gifts matter … of their negotiations. However, we also find that small gifts tend to be counterproductive when purchasing and sales …
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Two players with preferences distorted by the focusing effect (Koszegi and Szeidl, 2013) negotiate an agreement over several issues and one transfer. We show that, as long as their preferences are differentially distorted, an issue will be inefficiently left out of the agreement or inefficiently...
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