Narcissism and Negotiation: Economic Gain and Interpersonal Loss

Successful negotiation involves satisfying two seemingly contradictory goals: maximizing personal gain while forming a positive interpersonal relationship with negotiation counterparts. We hypothesized that individuals high on narcissism would gain economically but loose interpersonally in a negotiation. Seventy MBA students engaged in a negotiation simulation, completed a measure of narcissism, reported their emotional states, evaluated their negotiation counterparts' emotional states, and evaluated how much they trusted and liked their counterparts. Consistent with the hypothesis, results revealed that in negotiations, narcissistic personality characteristics can lead to economic gain but are accompanied by interpersonal loss.