The effects of information exchange and communication in an asymmetrical negotiation situation

Abstract

AbstractSeventy‐eight dyads of male university students participated in a bargaining experiment. The bargaining situation was asymmetrical insofar as the two players had different payoff possibilities. Experimental instructions did not provide information about the opponent's payoff possibilities but players could ask each other for such information (except in the control condition). It was found that the players in the advantaged position (with better payoff possibilities) bluffed more frequently and communicated less with the opponent than their disadvantaged opponents. But there were no differences in the frequency of refusing to give requested information, nor in the frequency of requesting information. Verbal communication opportunities reduced the frequency of bluffing (false information) but did not by themselves lead to smaller payoff differences between the two players. Payoff differences were smallest when information exchange was obligatory and truthful and they were greatest when neither information exchange nor communication was possible.