Much of the materials with the tag bfa comes from the Bargaining for Advantage book.
Reciprocity is the key to sustaining trust in negotiations.
Follow this code of conduct:
- Always be trustworthy and reliable.
- Be fair to those who are fair to you.
- Let them know when you feel you have been treated unfairly.
Distinguish between personal and working relationships. Personal relationships lead to softer bargaining styles, at a cost.
Actively build working relationships. The key is sincerity. Lack of it causes damage to the relationship.
Similarity Principle: People will trust those who are familiar to them (e.g. similar interests, etc). Try to be more like your counterpart - even in small ways.
Give gifts and favors as symbols of good faith. It builds trust.
Build a relationship network: Having mutual acquaintances in a network helps a great deal.
Trusting too quickly: Sharks may ask for significant commitments without guaranteeing anything in return.
Reciprocity traps: The other party gives you something insignificant and then tries to compel you to reciprocate with something much riskier.
When stakes are high, negotiating with friends is risky. You can use equity norms, such as:
- To each according to his inputs.
- To each according to her risk.
Even then, when dealing with friends, it may be wiser to delegate bargaining to neutral advisors, or a single advisor trusted by both.