Would you pay thousands of dollars more for a car just to skip the negotiation process? According to new research by David Hunsaker, clinical associate professor of management at the IU Kelley School of Business Indianapolis, many Americans would—and do.
How common is this mindset?
“Across five studies, we found that 95% of individuals choose not to negotiate up to 51% of the time,” Hunsaker explained. This means negotiation avoidance is not the exception rather the norm.
The research, published in Negotiation and Conflict Management Research, was conducted by Hunsaker in collaboration with Hong Zhang of Leuphana University and Alice J. Lee of Cornell University. Their work explores why people avoid negotiating, what it costs them, and how organizations can respond.
Negotiation avoidance is the norm, not the exception
This study spans five large-scale experiments exploring why people avoid negotiating and what it costs them. The research examines:
- How often individuals forgo negotiation opportunities
- The Threshold for Negotiation Initiation (TFNI)—the minimum savings people need to justify negotiating
- The Willingness to Pay to Avoid Negotiation (WTP-AN)—how much extra people will pay to skip negotiating
- Whether interventions, such as utility comparisons or social norm prompts, can reduce avoidance
“Our work focuses on how much individuals are willing to sacrifice, or even pay, to avoid negotiating altogether,” David explained.
The idea for this research emerged at a negotiation conference in Israel. Hunsaker and his colleagues visited a market where bargaining is expected, yet none of them negotiated. “We asked ourselves: Why don’t people negotiate even when the opportunity is clear?” Hunsaker recalled.
“We framed this research around a simple question: When you have the chance to negotiate, will you?” Hunsaker said. “Even in traditional contexts like buying a car, companies now advertise ‘no-haggle pricing’ as a selling point. Businesses can raise prices by 5% to 11%, and more than half of consumers will pay it.”
The research also revealed that people judge negotiation value by percentage saved, not the absolute dollar amount.
“On average, participants needed savings of 21% to 36% of an item’s price before considering negotiation worthwhile,” Hunsaker noted. “This shows that decisions are driven by perceived proportional value—not absolute dollars.”
Hunsaker hopes the findings spark awareness. “Negotiation aversion is real, but at key points in your career, negotiation skills matter,” he emphasized. “Recognizing these tendencies is the first step toward overcoming them.”
Negotiation tips from the expert
To help you become a better negotiator, here are three tips from Dr. Hunsaker:
Preparation is everything
“Most of the work happens before the conversation begins,” Hunsaker said. “Information is power. Know your options and be honest about whether you have strong alternatives. If you don’t, you’ll enter with less leverage. Many people overlook this step—understand your position before you negotiate.”
Start higher than your target
“This is hard for a lot of people because you don’t want to sound selfish, but there needs to be room for concessions. If you don’t make that room, the other party will become upset. Start with an offer better than your goal and it will help the other party feel more satisfied with the deal.” Hunsaker shared.
Focus on relationships, not victory
“It’s about developing strong relationships. People that go into negotiation with a winning mindset end up burning bridges or hurting feelings. The people you most often negotiate with will be repeat customers or longtime clients. If you burn those bridges, you will miss out on deals later. Focus on doing well but also focus on listening to the other party and creating a foundation of trust,” Hunsaker said.
David Hunsaker is a clinical associate professor of management at the Kelley School of Business Indianapolis. He joined the faculty in 2024 and specializes in organizational behavior and negotiation.
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