Trust matters in negotiation

In this article we investigate the effects of negotiator trust and mediation on negotiating behavior and perceptions. We conduct three experiments in sequence with each succeeding study building on the results of the prior study. All used the same simulated dispute between a bar owner and customers. In the first experiment we found that negotiators who trusted the bar owner’s integrity moved further on an acceptable offer scale than those that did not. Results from a second experiment showed a strong main effect for trust but no difference for the presence vs. absence of a mediator. The third experiment also found strong trust effects but no differences among three mediation approaches; facilitative, directive or transformative. However, directive mediators were seen as less helpful and influential than both facilitative and transformative mediators. The trust findings were statistically mediated by a negotiator’s mindset, which consisted of perceptions of negotiation as a win-lose contest or problem-solving debate. These findings are discussed in terms of the power of trust and the value of main effects for advancing knowledge about negotiation and mediation.