Egocentric Perceptions and Self-Serving Bias in Negotiations: Fairness, Dynamics, and Ethics

Abstract

Negotiation is one of the most common forms of social interaction and conflict resolution strategies – occurring in business, workplaces, and organizations – in which two or more parties strive to figure out an acceptable solution for their different or incompatible goals. These complex bargaining processes are always characterized by various psychological aspects. This article sheds light on two significant cognitive components impacting all facets and stages of negotiation – egocentrism and self-serving bias. Their negative effects on negotiation regarding fairness judgment, information distortion, and interactional dynamics are presented, explained, and illustrated. The paper addresses how egocentric perceptions and self-serving tendencies affect the ethical behavior of the involved parties, and it looks at these biases through intercultural lens too. The article concludes by proposing tactics and practices aimed to reduce the damaging consequences of egocentric shortcomings in negotiation and increase chances to achieve the best possible outcomes.