Why Do People Lie During Negotiations?

The other night in mediation ethics class, we discussed using deception in negotiation and more specifically why certain folks will outright misrepresent an important fact as opposed to merely puffing or embellishing a little bit.

In order to use such deception, we have to tell ourselves it is okay by using some excuse, justification, or rationalization. We have to give ourselves permission to do it and thus calm the cognitive dissonance occurring inside our brains.

Thus, we tell ourselves little “white” lies like we are doing it for the greater good of society ( that is, stealing from the rich to give to the poor), or it was unavoidable due to the circumstances or situation, or it was harmless? (a little white lie?), or given the situation – the tactic was fair and appropriate, or the other side started it and so we are going to finish it (what goes around comes around?) or they had it coming- they deserved it or it will help avoid negative consequences (the ends justifies the means!) or good consequences will result.

While I thought this list was fairly extensive, ?the Harvard Program on Negotiation (PONS) blog added a few more. In a blog dated October 3, 2023, written by staff entitled? “Ethics in Negotiations: How to Deal with Deception at the Bargaining Table.“? The author lists four more rationalizations: the lure of temptation, uncertainty, feeling powerless, and anonymous victims.

The first- the lure of temptation-reminds me of the ends justifies the means philosophy. That is, the higher the potential reward, the greater the incentive to misrepresent. The author cites a study in which the participants were bargaining and could be rewarded $1.00 or $100. As you might surmise, those who were promised only $1.00. misrepresented 41% of the time while those who stood to earn $100, were misrepresented 69% of the time.(Id.? at 1-2.)

Then there is the issue of uncertainty. “Uncertainty increases the likelihood that we will be unethical…. Uncertainty about the material facts in a negotiation can inspire unethical behavior.” (Id. at 2.) ?One study showed that the participants tended to be more aggressive in their estimates when they were uncertain about a fact than when they knew the fact with certainty. ??(Id. at 2.)

A third reason for deception is the feeling of being powerless. Although it was Lord Acton who stated “” Power tends to corrupt and absolute power corrupts absolutely””,? (Id.) studies have shown that those who feel that they indeed have no power, tend to be more deceptive. Thus, one who has very few options (backed into a corner?) may well be more likely to misrepresent things than one who has lots of other options. (Id). ( If you think about this for a moment, you may see it makes sense.)

The final rationalization is that the victim is anonymous. (Think about the warning against pirating movies that we see on movies we are about to ?stream telling us it is not a? victimless crime!) The blog notes a study in which the participants either lied to a single individual or a group of individuals.? The researchers found that the participants lied to a single individual only 36% of the time while if to a group- it was 73% of the time. Without a face staring back at you, looking you in the eyes, it is a lot easier to lie. A group is a? lot less personal than a single individual! (Id.)

No doubt, there are many more rationalizations we can tell ourselves to excuse our little ‘white” lies, but I think this list is enough for now!

…. Just something to think about.