Have you ever wondered whether humor has a place in business negotiation—and when it’s appropriate to use it?
To explore this question, we spoke with Alison Wood Brooks, O’Brien Associate Professor of Business Administration and Hellman Faculty Fellow in the Negotiation, Organizations & Markets Unit at Harvard Business School. As an expert in the psychology of emotion and communication, Professor Brooks offers insight into how humor can influence trust, ease tension, and even shape negotiation outcomes when used thoughtfully.
Imagine this scenario:
You’re sitting with your company’s partners. The conversation stalls. Positions harden. The room tightens.
Then your boss cracks a well-timed joke. Laughter ripples across the table. The mood shifts. Suddenly, conversation flows again—and she manages to restate her position in a way that lands.
We’ve all seen humor revive a negotiation.
We’ve also seen jokes flop spectacularly.
So when—and how—should humor be used at the bargaining table?
Why Humor Matters in Negotiation
Humor may seem frivolous in serious business settings. But few conversational strategies shift emotional tone as quickly or powerfully.
Research in negotiation and organizational behavior shows that humor can:
- Induce positive emotion
- Increase trust and social closeness
- Enhance team performance
- Boost creativity
- Improve perceived confidence and competence
In the workplace—where norms of professionalism are often ambiguous and consequential—the strategic use of humor requires judgment. But when deployed effectively, it can transform interactions.
The Research on Humor and Performance
Several studies illuminate the potential benefits of humor in negotiation and team settings.
Research led by Nale Lehmann-Willenbrock at the University of Amsterdam found that humor fosters positive emotion, which in turn promotes constructive communication and stronger team performance.
Li Huang of INSEAD found that when coworkers who trust one another use sarcasm—a form of saying the opposite of what one means—they perform better on tasks requiring creative insight.
In research conducted with Brad Bitterly and Maurice Schweitzer at Wharton, Alison Wood Brooks found that when a joke elicits genuine laughter and is perceived as appropriate, it signals:
- Social intelligence
- Confidence
- Competence
- Higher status
A successful joke demonstrates that you understand the room.
The Risks of Humor in Business Negotiation
For every successful joke, there is the possibility of failure.
Humor can go wrong in two major ways:
- It may be perceived as unfunny.
- It may be perceived as inappropriate.
An inappropriate joke can damage trust quickly and sometimes irreversibly. Lewd, derogatory, or demeaning humor carries high reputational risk and should be avoided.
In professional negotiations, the margin for error is often narrow.
Using Humor to Ease Tension
Negotiations frequently involve tension and negative emotion.
Professor Brooks notes that humor can function similarly to a strategy first proposed by the late Harvard professor Howard Raiffa: the post-settlement settlement—continuing to negotiate after reaching agreement because new value often emerges once tension subsides.
Humor operates in a comparable way. A well-timed, sincere joke can:
- Break psychological tension
- Increase social closeness
- Build rapport
- Shift the tone toward collaboration
When tension decreases, creativity and flexibility increase.
Using Humor to Navigate Difficult Questions
One of the hardest parts of negotiation is responding to questions you cannot—or should not—answer directly.
A counterpart may ask for:
- Your bottom line
- Your reservation price
- Sensitive internal information
In these moments, humor can serve as a temporary deflection tool. A light remark can:
- Buy time
- Diffuse pressure
- Redirect the conversation
Used sparingly and strategically, humor can help you maintain composure while protecting your bargaining position.
Humor and Subjective Satisfaction
Negotiation outcomes are not judged solely on economic terms. Satisfaction matters.
The most effective negotiators leave counterparts feeling positive about the interaction—even if the deal tilts in their favor.
Humor makes interactions more memorable. It increases subjective satisfaction and shapes how the experience is remembered.
A counterpart who laughs with you is more likely to recall the negotiation positively.
Know Thyself
Professor Brooks offers one essential caution: know yourself.
Humor comes naturally to some people. Others struggle to deliver jokes smoothly.
If you are not a natural humorist, you can still build warmth by:
- Laughing authentically at others’ humor
- Expressing lightness and openness
- Avoiding excessive seriousness
Few people enjoy negotiating with someone who never smiles.
You need not be a stand-up comedian. But signaling warmth and emotional flexibility can improve your negotiation outcomes.
When Is Humor Appropriate in Negotiation?
Consider using humor when:
- The room feels tense or stalled
- Trust has been established
- The stakes are high but the relationship matters
- You have a strong read on the social dynamics
Avoid humor when:
- Cultural norms discourage informality
- Trust has not yet been built
- The topic is highly sensitive
- You are unsure how your joke will be received
Like anchoring or framing, humor is a strategic tool. It requires preparation, awareness, and timing.
The Bottom Line
Humor in business negotiation is not a distraction—it is an emotional lever.
Used thoughtfully, it can:
- Increase trust
- Enhance creativity
- Build rapport
- Improve satisfaction
- Strengthen long-term relationships
Used carelessly, it can damage credibility.
The difference lies in emotional intelligence and social awareness.
Your Turn
What has been your experience using—or witnessing—humor in business negotiation?
When has it strengthened a deal? When has it backfired?
Self deprecatory humor works well, aggressive put down humor is dangerous and counterproductive.
David, I agree — if you’re going to have any sort of deprecatory humor. However, I believe the better approach is to find humor in the circumstances or perhaps even unrelated to the negotiation directly – sometimes it can be related to a casual comment at a break.