Why Many Americans Will Pay More Just to Avoid Negotiating

Key TakeawaysMost people avoid negotiating, even when it could save them moneyMany folks will pay 5% to 11% more just to skip the entire processPeople need large percentage savings before they feel negotiating is worth it.MONDAY, Jan. 5, 2026 (HealthDay News) — Many Americans would rather pay more than negotiate, and new research suggests that’s exactly why “no-haggle” pricing works so well.In five studies, researchers found that people avoid negotiating far more often than expected, even when cash is on the line.“Across five studies, we found that 95% of individuals choose not to negotiate up to 51% of the time,” study leader David Hunsaker said in a news release. He’s a clinical associate professor of management at Indiana University Kelley School of Business in Indianapolis.Published in the journal Negotiation and Conflict Management Research, the research looked at why people skip negotiations, what that choice costs them and how businesses often take advantage of it.The studies found that many people are willing to pay extra simply to avoid the stress of negotiating. Researchers measured this using what they call a Willingness to Pay to Avoid Negotiation (WTP-AN).“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.”What's more, people tend to judge whether negotiating is worth it based on percentages, not dollars.“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.”The idea for the research came after Hunsaker and his colleagues visited a market where bargaining was expected, yet none of them actually negotiated.“We asked ourselves: Why don’t people negotiate even when the opportunity is clear?” Hunsaker explained.He hopes the findings help people recognize a pattern.“Negotiation aversion is real — but at key points in your career, negotiation skills matter,” he said. “Recognizing these tendencies is the first step toward overcoming them.”More informationHarvard Law School has more on negotiation skills.SOURCE: Indiana University, news release, Dec. 19, 2025.What This Means For YouExperts warn that avoiding negotiation can quietly cost you money, especially in your career..Sign up for our weekly HealthDay newsletter

Why Many Americans Will Pay More Just to Avoid Negotiating

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