The Surprising Effectiveness of Hostile Mediators

Ting  Zhang; Francesca  Gino; Michael I. Norton

Article | Management Science | June 2017

The Surprising Effectiveness of Hostile Mediators

by Ting Zhang, Francesca Gino and Michael I. Norton

Abstract

Contrary to the tendency of mediators to defuse negative emotions between adversaries by treating them kindly, we demonstrate the surprising effectiveness of hostile mediators in resolving conflict. Hostile mediators generate greater willingness to reach agreements between adversaries (Experiment 1). Consequently, negotiators interacting with hostile mediators are better able to reach agreements in incentive-compatible negotiations than those interacting with nice mediators (Experiments 2). By serving as common enemies, hostile mediators cause adversaries in conflict to feel more connected and become more willing to reach agreement (Experiments 3 and 4). Finally, we manipulate the target of mediators’ hostility to document the moderating role of common enemies: mediators who directed their hostility toward both negotiators (bilateral hostility)—becoming a common enemy—increased willingness to reach agreement; those who directed hostility at just one negotiator (unilateral hostility) did not serve as common enemies, eliminating the hostile mediator effect (Experiment 5). We discuss theoretical and practical implications and suggest future directions.

Keywords: mediation; conflict; negotiation; emotions; hostility; Negotiation Style; Emotions; Conflict and Resolution;

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Citation:

Zhang, Ting, Francesca Gino, and Michael I. Norton. "The Surprising Effectiveness of Hostile Mediators." Management Science 63, no. 6 (June 2017): 1972–1992.

Working Paper | HBS Working Paper Series | 2020

'Repayment-by-Purchase' Helps Consumers to Reduce Credit Card Debt

Grant E. Donnelly, Cait Lamberton, Stephen Bush, Zoe Chance and Michael I. Norton

Many consumers struggle to repay their credit card debt, in part because paying small portions of large bills often feels fruitless. We introduce a novel credit card payment option—repayment-by-purchase—and examine its influence on both the amount consumers’ repay and their perception of progress toward reducing their debt. With typical repayment, consumers simply enter the amount they wish to pay toward their total balance—often the minimum required payment. With repayment-by-purchase, in contrast, consumers can select specific purchases (e.g., a coffee at Starbucks, a utility bill) that they wish to repay, and make payments specifically directed toward “eliminating” these purchases. Five studies reveal that repayment-by-purchase increases awareness of what is being repaid, which increases perceptions of progress toward reducing debt, which in turn encourages higher repayment. In a large field experiment, credit card customers who were given the opportunity to allocate their payment toward specific purchase categories paid 12.18% more toward their debt balance than a control group. These findings advance our practical understanding of how consumers can be encouraged to pay more toward credit card debt and offer conceptual insight into how both increased awareness and perceived goal progress enhance consumer motivation to get out of debt.

Keywords: consumer debt; goal pursuit; goal progress; financial decison-making; Personal Finance; Credit Cards; Borrowing and Debt; Goals and Objectives; Motivation and Incentives; Decision Making;

Citation:

Donnelly, Grant E., Cait Lamberton, Stephen Bush, Zoe Chance, and Michael I. Norton. "'Repayment-by-Purchase' Helps Consumers to Reduce Credit Card Debt." Harvard Business School Working Paper, No. 21-060, November 2020. View Details

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This background note introduces readers to a new framework--the ASCEND model--through which individuals can view their professional developmental relationships.

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The Surprising Effectiveness of Hostile Mediators

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