Saturday, February 6, 2016

A632.4.5.RB_PALUGODCAROLYN




Deception or misinterpretation during negotiations is quite common as a way of gaining advantage (Hoch, Kunreuther, & Gunther, 2001).  Hoch et. al. (2001) describe two types of lies, lies of omission and lies of commission.  Lies of commission tend to be more condemnable than those of omission.  There are four ways in which information can be misinterpreted according to Hoch et. al. (2001).  The first, Reservation Prices, is highly misguiding since many times what negotiating partners claim as their reservation price, many times could be lower then what they claim.  This is easily seen in supermarket mark downs.  Items are advertised as “on sale” when in effective, the price has really gone from a mark-up to its standard price, manipulating the customer into thinking there is a discount when there isn’t.  The second misrepresentation of information that can be evaluated is Interests.  In this case a negotiator may pretend they do not share the same interests as their negotiating partner as a ways of asking for extra concessions.  During my negotiations with the real estate agent when I tried to get the rent price lowered, we both misrepresented our interests. The real estate agent claimed that the owner of the apartment was not in a hurry to rent the apartment because he really didn’t need the money.  I in turn told the agent that I was not in a hurry to find a place and would be willing to wait for something cheaper.  Both she and I had a mutual interest for me to move into the apartment as quickly as possible but were negotiating for extra concessions.  I waited to pay less for example.  The third misinterpretation that is mentioned is Intentions.  Going back to my example when dealing with the real estate agent for my apartment,  the real estate agent misrepresented information regarding how many people were looking at the apartment.  This is a common tactic used by real estate agents.  When I tried to negotiate the price and verbalized my intent to wait or search for a cheaper apartment, she told me that there were other people lined up that had an interest in the apartment and it would be rented by the next day if I didn’t take it. This was her way of trying to get me to concede to the original price. A few days later she contacted me and told me the owner would consider dropping the price if I was still interested.  The last misrepresentation that can be used is Material Facts.  This is probably one of the most serious misleading information as the negotiator is bluntly lying about the facts.   I have encountered this type of misrepresentation of information when shopping on Amazon and a seller gives erroneous information about the product.

One example of overstating a claim could clearly be seen on my resume.  During my younger years when I had little work experience I would sometimes over exaggerate my talents or completely lie about my skill levels in order to get employment.  I am a very fast learner and in some instances was sure that I would be able to do the job yet I also recognized that if I didn’t have the job experience they were looking for, they wouldn’t give my resume a second look.  In this case I weighed out the cost and benefit of my deception realizing that the benefit outweighed the possible cost (getting caught for example) and also justify my deception by recognizing my quick learning curve (Hoch et. al., 2001) .

I consider myself to be a very honest person and I hold others to the same ethical standard.  I am okay with white lies but my standard for lying or misrepresenting information is based on the following guideline which is harming no one.  If my deception does not harm anyone physically, emotionally or mentally, I think it is acceptable.


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