Prevention-bias in Contracting: Exchange Participation Under Prevention Versus Promotion Contracts



We extend prior work on promotion and prevention contract frames by examining their origins and prevalence, and their effects on levels of participation in exchanges. In two surveys of contracting professionals, we find higher prevention than promotion focus in the context of work and a positive association between individuals’ prevention focus and their tendency to include prevention clauses in contracts. Also, across three experiments, we find that prevention contracts are more effective than promotion contracts at increasing exchange participation, both in an initial exchange and when another contract in the potential partner’s alliance portfolio included less desirable terms. However, promotion contracts are more effective than prevention contracts at increasing exchange participation following a violation of exchange expectations during a prior informal relationship. 

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Meeting ID: 963 7672 5099