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WP-98-16

The Human Mind as a Barrier to Wiser Environmental Agreements

Max H. Bazerman, Don A. Moore, and James J. Gillespie

Abstract

Human ingenuity offers the best hope for tackling a whole range of environmental problems currently threatening global welfare, yet the human mind also creates cognitive barriers to wise environmental agreements. In this paper, we focus on a set of systematic cognitive barriers that are particularly endemic to environmental disputes. The fixed-pie bias grows from the assumption that disputants' interests are perfectly opposed. This mythical fixed pie inhibits the discovery of beneficial trade-offs that integrate parties' interests. We also discuss five other cognitive biases that combine with the fixed-pie assumption to influence the resolution of disputes in the environmental domain: pseudosacredness, egocentrism, overconfidence, optimism, and endowment effects. We discuss the potential role of learning and experience in improving negotiator performance. The paper concludes with prescriptive advice for overcoming these cognitive barriers.

Max H. Bazerman, Currently, Harvard Business School, Harvard University
Don A. Moore,
Department of Organization Behavior, Kellogg Graduate School of Management, Northwestern University
James J. Gillespie,
Department of Organization Behavior, Kellogg Graduate School of Management, Northwestern University



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