Source-oriented asymmetric information sharing in B2B negotiations: Two sides of time pressure

Abstract

The information asymmetry in a B2B negotiation between the buyer and seller can be a source of concern. Sharing the asymmetric information can alleviate some of these concerns. However, the negotiating parties may be skeptical about the motive behind the asymmetric information sharing. In this research, we investigate how buyers and sellers respond to sharing initiatives in the negotiation process by examining their effects on trust, fear of missing out, and willingness to accept the offer. We conducted three experiments with both sellers and buyers who work in B2B sales and procurement, respectively. Our research findings indicate that time-sensitive asymmetric information sharing can generate higher trust, FOMO, and sellers' willingness to accept the offer. However, buyers have more trust and subsequent willingness to accept the offer if the seller uses no time-sensitive asymmetric information sharing strategy. The findings therefore contribute to the information asymmetry and negotiation strategy literature. The findings also offer practical policy suggestions for both B2B buyers and sellers, indicating that sellers can utilize time pressure as a negotiation tactic, whereas buyers should refrain from doing so in the information asymmetry context.