Which information should you reveal in negotiation—and which should you keep to yourself?
Negotiation theory often urges us to cooperate when possible, sharing information to uncover interests and create value. At the same time, many negotiators are understandably wary of revealing too much, fearing that openness could be exploited. In practice, effective negotiators do neither reflexively. Instead, they weigh the risks and rewards of disclosure carefully.
Here, we examine four categories of information that may be best kept under wraps: sensitive or privileged details, information that does not belong to you to disclose, information that could weaken your bargaining position, and information that may shift or evolve over the course of negotiations.
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1. Sensitive or privileged information
Deciding whether to disclose sensitive information—such as trade secrets, financial data, or even your own preferences (targets, reservation prices, needs, and interests)—can be one of the most difficult judgment calls in negotiation.
On the one hand, this information can be essential for identifying tradeoffs and creating value. On the other hand, revealing it too early or too fully can invite exploitation if your counterpart uses it strategically against you.
In many negotiations, you will also possess information about the other party or the deal—industry conditions, financial pressures, competitive alternatives—that they may not realize you know. To assess your counterpart’s trustworthiness, consider planting a “trust landmine”: ask a few questions to which you already know the answers. If your counterpart dodges these questions or lies outright, that may be a signal to limit what you reveal—or, in some cases, to reconsider the negotiation altogether.
Of course, answering a few questions honestly does not guarantee consistent good faith. Still, trust landmines can provide a useful early indicator of how carefully you should guard your information.
2. Information that isn’t yours to share
When you negotiate as an agent—whether as a lawyer, broker, manager, or organizational representative—disclosure decisions are often not yours alone to make. Information may belong to a client, employer, or partner, and sharing it without authorization can create legal, ethical, or relational problems.
Even when information does not formally “belong” to someone else, disclosing it may still harm another party. Suppose you are negotiating with one supplier and feel tempted to reveal another supplier’s bottom line to gain leverage. Before doing so, it may be wise—or necessary—to consult that party first.
When in doubt, pause and clarify who owns the information and who bears the consequences of disclosure.
3. Information That Weakens Your Bargaining Position
If you believe you have less power than your counterpart, think carefully about the downside of making what might seem like harmless “information concessions.”
For example, physically injured plaintiffs may be tempted to disclose details about their current condition to secure an early settlement, even though longer-term injuries—and higher damages—may later emerge. Similarly, in a hot real-estate market, the buyer who expresses the strongest emotional attachment to a particular house risks being exploited by a seller fielding multiple offers.
Before sharing information, ask yourself whether your desire for a particular outcome might lead you to reveal more than you should—and whether that disclosure could be used to pressure you.
4. Information That May Change Over Time
Not all information is stable. Market conditions, prices, forecasts, and even preferences can evolve as negotiations unfold. When key facts are uncertain or likely to change, it may be prudent to delay disclosure—or to build flexibility into the agreement.
One option is to include contractual contingencies that allow parties to “bet” on differing predictions. Another is to add clauses that permit renegotiation if specified conditions change. These mechanisms allow negotiators to move forward without locking themselves into assumptions that may soon prove inaccurate.
Revealing information is rarely an all-or-nothing decision. Skilled negotiators treat disclosure as a strategic choice, revisited throughout the negotiation rather than settled at the outset.
Have you ever regretted showing your hand too early in negotiations? Share your story in the comments.
Adapted from “Know When to Show Your Hand,” by Carrie Menkel-Meadow (professor, Georgetown University Law Center), first published in the Negotiation newsletter, June 2007.
Claim your FREE copy: Negotiation Skills
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.
Great article. Me and my business partner always see differently in terms of what information to share with the other side. I always tend to a more collaborative approach where as my partner tends to be more secretive. How do you identify what “diminishes your power” in negotiation? In theory one could argue that most pieces of information may end up being used against you…