Preventing Betrayal and Promoting Trust: A Social Exchange Analysis of Strategic Focus in Negotiation

31 Pages Posted: 5 Dec 2007

See all articles by Mara Olekalns

Mara Olekalns

University of Melbourne - Melbourne Business School

Philip Smith

University of Melbourne - Department of Psychology

Date Written: 2007

Abstract

Deal-making negotiations can be characterized as social exchanges in which individuals trade both tangible resources such as goods and information, and intangible resources such as favors and esteem. Representing negotiations in this way highlights both the implicit obligation for recipients to return resources, and the possibility that they will betray the relationship and fail to do so. The trustworthiness of the other party is thus central to negotiators' strategic choices. To better understand how trustworthiness affects these choices, we develop a typology of relationships based on their representation on the dimensions of relational form whether negotiators represent outcomes as independent or interdependent, and relational assurance, the likelihood that characteristics of the relationship will promote successful interaction (low or high). Drawing on trust theory, we link each of the four relational types defined by this typology to a specific relational risk, which we characterize as failures in reliability, predictability, integrity or empathy. We then describe four distinct strategic clusters (deterrence, co-ordination, obligation, collaboration) that negotiators use to offset or neutralize these relational risks.

Keywords: Dyadic Negotiation, Special Exchange, Trust, Negotiation Tactics, Negotiation Theory

Suggested Citation

Olekalns, Mara and Smith, Philip L., Preventing Betrayal and Promoting Trust: A Social Exchange Analysis of Strategic Focus in Negotiation (2007). IACM 2007 Meetings Paper. Available at SSRN: https://ssrn.com/abstract=1038221 or http://dx.doi.org/10.2139/ssrn.1038221

Mara Olekalns (Contact Author)

University of Melbourne - Melbourne Business School ( email )

200 Leicester Street
Carlton, Victoria 3053 3186
Australia
+61 3 9349 8146 (Phone)
+61 3 9349 8133 (Fax)

Philip L. Smith

University of Melbourne - Department of Psychology ( email )

School of Behavioural Science
Victoria 3010
Australia
+61 3 8344 6343 (Phone)

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