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Social norms constrain people's behaviors in transactions, but such norms are rarely investigated. Script theory provides a coherent, holistic structure for understanding socially mediated behaviors. This study proposes terms of a script for the pricing behavior of transactors when friendship is considered. The script generates testable hypotheses, which are studied in three lab-based experiments. Vignette studies considered the effect of friendship on two-party transactions and revealed consistent behaviors. Without discussion, subjects exhibit consistent agreement for what constitutes appropriate pricing for friends and for strangers in different contexts: when pricing a variety of commodities for a transaction, when acting as agents for a friend or a stranger, and when observing others engaged in such transactions.

A field study of real estate agents' transactions demonstrates that business friendship affects the negotiation process and the outcome of some transactions more for senior agents with 10 or more years of experience in real estate brokerage than for less experienced agents. Senior agents may have different cognitive scripts for business friendship than do new licensees. Newer agents rely more on friendly relations and on attention to reputation in their transactions, while the more experienced agents consider genuine business friendship useful for facilitating transactions.

A laboratory study examined effects of friendship on expectations of pricing in personal business transactions. Friends expect to pay more but charge less for a variety of commodities than do strangers. Remarkably, without discussion, friends agree on prices for commodities, whereas strangers do not. The result was replicated in a second study and extended to other commodities. The effect may be due to cognitive scripts for transactions with friends.

This is a true‐to‐life case. Two elected local officials, one elected on a community involvement plank (herein referred to as the Community Volunteer Representative) and the other elected because of a commitment to support the Parks Department (hereafter referred to as the Parks Department Representative) comprise the Ithaca Special Projects Task Force. They have been charged with deciding whether to fund a playground for the community, and if so, how much of the city's limited special project funds they should spend. Other projects requesting funding will be presented to them later in the year. Both representatives share the common goal of bettering the community. However, the issue is complicated by a variety of potential inter group conflicts that can threaten their position as elected officials, and that could jeopardize the harmony of the community that they are trying to help. Moreover, both representatives are aware that they, as well as their constituents, may have interests in both community volunteerism as well as in the well‐being of the Parks Department: Parks employees, for example, may also be community volunteers after work.

A classroom exercise suitable for either undergraduate or graduate students in public administration or related fields to simulate negotiations between two elected local officials over the funding of a playground for the community is presented, outlining the following dimensions: (1) background to the negotiation; (2) role description of negotiators; (3) description of task; (4) parameters of negotiation, including playground options, goals, structure of final agreement, & budget considerations; (5) descriptions of past projects; & (6) specific playground proposals. Guidelines for teacher use of the exercise in the following areas are provided: (A) learning objectives; (B) method; (C) analysis, including goals of parties, low conflict nature of case, environmental factors, political factors, demographic factors, intergroup conflict, sources of conflict, & strategies for managing intergroup conflict; & (4) discussion questions. 2 Figures, 1 Appendix, 12 References. Adapted from the source document.

Differences in negotiation outcomes & processes between 13 male & 12 female undergraduate student same-sex dyads are examined. Students were instructed to negotiate funding in a low-conflict, public policy negotiation case to provide the opportunity to observe a wider range of behaviors than are commonly revealed in negotiation research. Outcome analysis reveals that females allocated less than males, & content coding of audio transcripts reveals very different negotiation processes & styles underlying the outcomes. Implications & directions for future research are discussed. 1 Table, 2 Figures, 88 References. Adapted from the source document.