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Trust and reciprocity in negotiation

Trust and reciprocity in negotiation. Exchange of information Misrepresentation /avoidance Exploiting time Putting the other party under pressure Making concessions without reciprocating Exploiting partial/provisionnal agreement Making alliances and betraying the allied party(ies)

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Trust and reciprocity in negotiation

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  1. Trust and reciprocity in negotiation • Exchange of information • Misrepresentation /avoidance • Exploiting time • Putting the other party under pressure • Making concessions without reciprocating • Exploiting partial/provisionnal agreement • Making alliances and betraying the allied party(ies) • Pretending to negotiate but not actually negotiating

  2. Direct Reciprocity • Direct reciprocity refers to cooperative behavior in a two-player setting where cooperation is the strategy employed with an expected return from the other player. In other words, A helps B, then B helps A in return. • Give and Take processes, especially with repeated interactions over time • What to exchange? At what time? Accepted time lag for reasionable reciprocation? Forms of reciprocation?

  3. Direct Reciprocity • Positive reciprocity : favours, goods are exchanged reciprocally • Negative reciprocity (or strong reciprocity), punishment oriented – you want the other to lose more (possibly much more) than you lose yourself by investing in a (costly) punishment.

  4. Indirect Reciprocity Indirect reciprocity refers to general cooperative behavior within an already-established society, with an anticipated reciprocal payoff of more than just the proverbial “warm glow” in return. Drawing from the formulation of Nowak and Sigmund, indirect reciprocity can take on two forms: • (i) Upstream reciprocity: First A helps B, and then B helps C • (ii) Downstream reciprocity: First A helps B, and then C helps A

  5. The key understanding behind the concept of indirect reciprocity is that the cooperative behavior occurs within a society. The reciprocal payoff associated with indirect reciprocity does not come from the agent with whom one cooperates, but either from another agent within that society (in the case of downstream reciprocity), or from the general benefit that comes from the upkeep and maintenance of a public good (as implied by upstream reciprocity). This demonstrates that this social dynamic entails elements of goodwill or impure altruism. • “Help” can be understood in various ways in regard to the emergence and sustainability of trust. In the case where “helping” corresponds to merely posting (truthful) feedback, all three forms of indirect reciprocity (upstream, downstream and implied) reduce to the maintenance of a public good (namely, the reputation system) and thus can imply the existence of goodwill.

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