Examples of Negotiation in Daily Life – Information Asymmetries and Lies of Omission

Some examples of negotiation in daily life when dealing with a lack of information in bargaining scenarios

By on / Daily, Negotiation Skills

Whether we like it or not, negotiators often lie. Researchers have found that while most of us are generally aware of this fact, few of us are adept at detecting actual lies in negotiation.

In two studies, Maurice E. Schweitzer and Rachel Croson of the Wharton School at the University of Pennsylvania move beyond the challenge of lie detection, focusing instead on how to reduce your chances of being lied to in the first place. Their research separates strategies for avoiding lies of commission, the false statements negotiators make overtly, from lies of omission, or the intentional deception that occurs when negotiators lead each other to make incorrect inferences.


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The good news? You can reduce the risk of being deceived by lies of omission by asking lots of direct questions at the bargaining table. Draw up a set of relevant questions prior to the negotiation, and be prepared to ask them. The authors predict that specific questions are more likely than general questions to provoke honest answers. They further predict that open questions such as “What is the return rate on your products?” are more likely to be effective than confirming questions such as “I assume that your products have a low return rate?”

To avoid falling victim to lies of commission, Schweitzer and Croson encourage you to verify the other side’s claims externally—standard practice in journalism—and obtain written warrantees.

Not surprisingly, Schweitzer and Croson find that the weaker the relationship, the more vigilant negotiators need to be to the risk that others will be untruthful. Lying is perhaps the most common reason cited when negotiators blame the other side for a bad outcome. While the blame may be justified, it’s not likely to get your lost money back. A better approach is to change the negotiation dialogue and avoid being lied to from the start.

Related Negotiation Skills Article:  Example of Negotiation in Daily Life – Giving Feedback in Negotiation Scenarios – Here is an example of negotiation in daily life – receiving tough feedback and responding in an effective way that preserves relationships and resolves disputes

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Build powerful negotiation skills and become a better dealmaker and leader. Download our FREE special report, Negotiation Skills: Negotiation Strategies and Negotiation Techniques to Help You Become a Better Negotiator, from the Program on Negotiation at Harvard Law School.

Adapted from “So, You Don’t Want the Other Side to Lie,” first printed in the Negotiation newsletter, June 2004.

2 Responses to “Examples of Negotiation in Daily Life – Information Asymmetries and Lies of Omission”

  1. Shree Mulay /

    This article confuses me in terms of the recommendation of the type of questions one should ask? On the one hand, it recommends open ended questions - on the other, it recommends specific questions? How do we ask specific open ended questions? Or do we rely on general open ended questions in order to determine and guide us to the specific closed ended questions that we should ask? Any clarification in this regards would be appreciated! Thanks! Reply

  2. Dean Gilliland /

    Recommendations I have include looking at the context of what the other negotiator is saying. Are they exaggerating? Can they quantify the exaggeration. I spoke with four contractors who said.......... Can you tell me who those contractors were? Do you have their statements in an email? Can you send me over their quote? Verify and Quantify! Maintain a view of the verbal context of what they tell you. Does it change over time? Reply

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