This is an experimental study of emotion in social interaction. It attempts to (1) delineate the cognitive mediation of the influence of affect on integrative bargaining, (2) offer an explicit theory specifying this cognitive mediation, and (3) provide an experimental test of the hypotheses concerning the role of affect in integrative bargaining. Positive affect is predicted to increase the subjective probability assessment of a mutually beneficial agreement, which in turn will increase the actor's level of aspiration. Similarly, positive affect will increase trust, and trust and level of aspiration will combine to increase the likelihood of achieving integrative solutions. These predictions would be tested by an experiment in which affect is manipulated (positive, neutral, and negative), the proposed intervening cognitions are assessed, and the effects observed in the outcomes of a bargaining task. The key dependent variable is the degree to which the bargaining outcomes are integrative, that is the extent to which they provide high joint profit. This pilot study will serve as a starting point for further work focussing on the implications of structural and situational sources of affect, relevant self processes, and the interactional nature of negotiation.