“Puffing” In Negotiations — The Hazard Of Trust: A Study

By: Donald L Swanson

“Puffing” is famously—or notoriously—known as acceptable negotiating behavior in these United States.

“Puffing” means something akin to “fibbing”: taking exaggerated positions, pursuing hidden agendas, hiding the ball on willingness to bend, etc. 

Although “puffing” in negotiations may be acceptable behavior, it is, often, not a good idea.  Faking anything in negotiations can backfire—and often does.

A Study

A study on anger in negotiations illustrates the point.  The study is titled “The Consequences of Faking Anger in Negotiations” [fn. 1].  Here are excerpts from the article that summarize its thesis:

• “Individuals often fake anger – by showing anger that they do not genuinely feel – to achieve their personal goals and promote their own interests”;
• A common way to fake emotions is by “surface acting,” in which “individuals ‘put on a show’ by generating expressive displays of anger that they do not actually feel”; but
• Individuals are “dissatisfied” and have “little interest in negotiating again” with surface actors “because they have little trust in them” (emphasis added).

Can’t say that I have a lot of experience with faking anger—either on the giving or receiving end.  But,

• the basic point seems true: faking anything to another person in negotiations can reduce trust and can sabotage negotiation efforts; and
• minimizing the use of “puffing” in negotiations is a goal that should pursued—for practical, not ethics, reasons.

A Story

A negotiating experience in my early career helped establish my view on the subject.  The details of the dispute are long-gone from memory, but the essence of what happens remains to this day.

Here’s the story.

I’m representing a client in a business dispute.  Settlement negotiations are about to begin, and the client is providing a list of demand items.  One item is a non-monetary detail [let’s call it “Element X”] that the client describes as an “essential element” of any settlement that is “non-negotiable.”

The client then provides the rationale for Element X—but adds that this rationale cannot be disclosed to the other side because the rationale, if known, would harm the client in a variety of contexts.  [Note:  There is nothing morally or ethically wrong with Element X or its rationale.]

Our attorney/client discussions that ensue go something like this:

• Me:  “What rationale should we give for Element X?”
• Client:  “Make something up.”
• Me:  “It has to be tethered to reality, somehow.”
• Client: “Then, tell them this: ________.”
• Me:  “But that won’t make sense to the other side.”
• Client:  “Do the best you can.”

So, a letter goes out with our settlement proposal, and discussions with the opposing attorney go something like this:

• Me:  “So, what do you think about our proposal?”
• Attorney:  “Here’s our counter offer: ___________” [which omits Element X].
• Me:  “Just to be clear, Element X in our proposal is an essential element for settlement—it’s non-negotiable.”
• Attorney.  “I’ll check with my client and get back to you.”

The next conversation with the opposing attorney goes something like this:

• Attorney:  “We don’t understand why Element X would be non-negotiable.  What’s the rationale?”
• Me:  “The client must have Element X because [the authorized rationale].”
• Attorney:  “Don, that doesn’t make any sense!”
• Me:  I’m thinking (“Yep, you’re right”) but muddle through a repetition of the authorized rationale.

In subsequent discussions, its clear that the opposing attorney is irritated—at me—and is distrustful—of me!  That’s because the explanation I provided makes no sense.

In the end, negotiations crater.

Conclusion

At the conclusion of the entire process in that story, as further reflection clarifies what happened and what went wrong, I conclude with this sentiment:  “Here’s a new hard-knocks rule—don’t do that again!”

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Footnote 1.  The study is by Stéphane Côté, Ivona Hideg, and Gerben A. van Kleef, and is published in the Journal of Experimental Social Psychology, May 2013.

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