IDEAS home Printed from https://ideas.repec.org/a/cup/buetqu/v3y1993i04p359-394_00.html
   My bibliography  Save this article

Promoting Honesty in Negotiation: An Exercise in Practical Ethics

Author

Listed:
  • Cramton, Peter C.
  • Dees, J. Gregory

Abstract

In a competitive and morally imperfect world, business people are often faced with serious ethical challenges. Harboring suspicions about the ethics of others, many feel justified in engaging in less-than-ideal conduct to protect their own interests. The most sophisticated moral arguments are unlikely to counteract this behavior. We believe that this morally defensive behavior is responsible, in large part, for much undesirable deception in negotiation. Drawing on recent work in the literature of negotiations, we present some practical guidance on how negotiators might build trust, establish common interests, and secure credibility for their statements thereby promoting honesty We also point out the types of social and institutional arrangements, many of which have become commonplace, that work to promote credibility, trust, and honesty in business dealings. Our approach is offered not only as a specific response to the problem of deception in negotiation, but as one model of how research in business ethics might offer constructive advice to practitioners.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Cramton, Peter C. & Dees, J. Gregory, 1993. "Promoting Honesty in Negotiation: An Exercise in Practical Ethics," Business Ethics Quarterly, Cambridge University Press, vol. 3(04), pages 359-394, October.
  • Handle: RePEc:cup:buetqu:v:3:y:1993:i:04:p:359-394_00
    as

    Download full text from publisher

    File URL: http://journals.cambridge.org/abstract_S1052150X0000991X
    File Function: link to article abstract page
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gregory Dees, J. & Cramton, Peter C., 1991. "Shrewd Bargaining on the Moral Frontier: Toward a Theory of Morality In Practice," Business Ethics Quarterly, Cambridge University Press, vol. 1(02), pages 135-167, April.
    2. Hirschman, Albert O., 1985. "Against Parsimony: Three Easy Ways of Complicating some Categories of Economic Discourse," Economics and Philosophy, Cambridge University Press, vol. 1(01), pages 7-21, April.
    3. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Oxford University Press, vol. 38(1), pages 1-12.
    4. Peter C. Cramton, 1992. "Strategic Delay in Bargaining with Two-Sided Uncertainty," Review of Economic Studies, Oxford University Press, vol. 59(1), pages 205-225.
    5. Kennan, John & Wilson, Robert, 1993. "Bargaining with Private Information," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 45-104, March.
    6. Myerson, Roger B. & Satterthwaite, Mark A., 1983. "Efficient mechanisms for bilateral trading," Journal of Economic Theory, Elsevier, vol. 29(2), pages 265-281, April.
    7. Abreu, Dilip & Pearce, David & Stacchetti, Ennio, 1986. "Optimal cartel equilibria with imperfect monitoring," Journal of Economic Theory, Elsevier, vol. 39(1), pages 251-269, June.
    8. Kronman, Anthony T, 1985. "Contract Law and the State of Nature," Journal of Law, Economics, and Organization, Oxford University Press, vol. 1(1), pages 5-32, Spring.
    9. Joel Sobel, 1985. "A Theory of Credibility," Review of Economic Studies, Oxford University Press, vol. 52(4), pages 557-573.
    10. Bengt Holmstrom, 1979. "Moral Hazard and Observability," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 74-91, Spring.
    11. Porter, Robert H., 1983. "Optimal cartel trigger price strategies," Journal of Economic Theory, Elsevier, vol. 29(2), pages 313-338, April.
    12. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    13. repec:bla:joares:v:27:y:1989:i:1:p:1-20 is not listed on IDEAS
    14. Fudenberg, D., 1991. "Explaining Cooperatiob and Commitment in Repeated Games," Working papers 590, Massachusetts Institute of Technology (MIT), Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Al-Khatib, Jamal A. & Malshe, Avinash & AbdulKader, Mazen, 2008. "Perception of unethical negotiation tactics: A comparative study of US and Saudi managers," International Business Review, Elsevier, vol. 17(1), pages 78-102, February.
    2. Desmond, John & Crane, Andrew, 2004. "Morality and the consequences of marketing action," Journal of Business Research, Elsevier, vol. 57(11), pages 1222-1230, November.
    3. Moshe Banai & Abraham Stefanidis & Ana Shetach & Mehmet Ă–zbek, 2014. "Attitudes Toward Ethically Questionable Negotiation Tactics: A Two-Country Study," Journal of Business Ethics, Springer, vol. 123(4), pages 669-685, September.
    4. Dees, J. Gregory & Cramton, Peter C., 1995. "Deception and Mutual Trust: A Reply to Strudler," Business Ethics Quarterly, Cambridge University Press, vol. 5(04), pages 823-832, October.
    5. Kerry Pedigo & Verena Marshall, 2009. "Bribery: Australian Managers’ Experiences and Responses When Operating in International Markets," Journal of Business Ethics, Springer, vol. 87(1), pages 59-74, June.
    6. Claudio Weber Abramo, 2003. "What If? A Look at Integrity Pacts," Public Economics 0310008, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:buetqu:v:3:y:1993:i:04:p:359-394_00. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters). General contact details of provider: http://journals.cambridge.org/jid_BEQ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.