26 July Can I Trust You? How to Deal with Lies in Negotiations

Lying is part of daily routine in negotiations. Those who skillfully deceive, trick, and cheat can gain a strategic advantage. Bluffing leads to information asymmetry and thus dilutes the possibility of finding optimal agreements in negotiations. It shifts the benefits, which would otherwise be negotiated by both sides, to the side of the liar. To keep lies undetected, people have developed ways to proceed skillfully. Often, negotiators are blind to these signals because pointing out a lie to someone carries the potential for conflicts and the risk of losing face.

Lying is Mentally Demanding Work  

The liar must pay attention to countless details: the content must be plausible, and responses to inquiries must be quick, authentic, and spontaneous. The false statements must also be remembered. Voice tone and body language have to be aligned with the false statements.

Those Who Lie in Negotiations Often Pay a High Price

Lies that are detected have a lasting negative impact, not only on the current negotiation results but also on future ones. In the immediate negotiation, lies and other forms of deception trigger negative emotions: we are disappointed, angry, furious, and become distrustful. Retaliatory actions are undertaken and irrevocably destroy the trust between the negotiation partners. Once a reputation is ruined, it precedes the negotiator. Anyone interested in long-term relationships with their negotiation partners should avoid building a reputation as a dishonest negotiator.


What Can You Do When Confronted with Lies in Negotiations?

Given the various negative impacts of lies in negotiations, the question arises: When is the right moment for the truth? Take action whenever the progress of the negotiation is hindered:

1. Verify information by cross-checking it from different sources. You might set a trap by asking a question to which you already know the answer.
   
   
2. Stay engaged in the conversation. The more you learn, the harder it will be for the other side to keep track of all the information that does not correspond to the facts. This allows you to check the answers for consistency.
   
   
3. Be mindful when some of your questions are not answered, information is likely being withheld from you.

Negotiation Hacks for Dealing with Deception

1. Create a trustworthy atmosphere. It is far more productive to cultivate a foundation of trust, making it difficult and unattractive for your counterpart to lie. Trust is based on reciprocity.
   
   
2. Politely address your suspicion: "According to my knowledge..." In a study by researchers Schweitzer, Hershey, and Bradlow¹, it was found that 61% of people tell the truth when asked directly, even if this information weakens their negotiating position.
   
   
3. Forgive the other side if they admit to having lied and apologize for it. Give them a second chance.
   
   
4. Do not give a third chance. Be brave and walk away if the second chance is abused.