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Resolving the empty core: trust as a determinant of outcomes in three-party negotiations

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  • Mara Olekalns

    (University of Melbourne)

  • Feyona Lau

    (University of Melbourne)

  • Philip L. Smith

    (University of Melbourne)

Abstract

This research examined how trust affected resource allocation in a three-party negotiation. Negotiators were presented with an empty core problem in which their theoretical share of resources exceeded the resources available for distribution. We tested which of three components of trust—reliability, predictability and empathy—predicted negotiators’ outcomes. We distinguished between absolute and relative trust. We found that relative trust was a more consistent predictor of individual outcomes than absolute trust and that the most trusted party in a network obtained the highest individual outcomes. This finding highlights the importance of social context in shaping trust judgements. The component of trust that predicted individuals’ outcomes was affected by structural power. High and low power negotiators benefited from conveying empathy (identity-based trust), whereas moderate power negotiators benefited from conveying predictability (knowledge-based trust). Low power parties also benefited from appearing unreliable (low calculus-based trust).

Suggested Citation

  • Mara Olekalns & Feyona Lau & Philip L. Smith, 2007. "Resolving the empty core: trust as a determinant of outcomes in three-party negotiations," Group Decision and Negotiation, Springer, vol. 16(6), pages 527-538, November.
    • Handle: RePEc:spr:grdene:v:16:y:2007:i:6:d:10.1007_s10726-007-9084-8
    DOI: 10.1007/s10726-007-9084-8
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    References listed on IDEAS

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    1. Ancona, Deborah G. (Deborah Gladstein). & Friedman, Ray. & Kolb, Deborah M., 1991. "The group and what happens on the way to 'yes'," Working papers 3262-91., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    2. Richard McKelvey & Peter Ordeshook, 1980. "Vote trading: An experimental study," Public Choice, Springer, vol. 35(2), pages 151-184, January.
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    Cited by:

    1. Kowalski, Michał & Lee, Zach W.Y. & Chan, Tommy K.H., 2021. "Blockchain technology and trust relationships in trade finance," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    2. Roman Trötschel & Marie van Treek & Caroline Heydenbluth & Kai Zhang & Johann M. Majer, 2022. "From Claiming to Creating Value: The Psychology of Negotiations on Common Resource Dilemmas," Sustainability, MDPI, vol. 14(9), pages 1-26, April.
    3. Shay S. Tzafrir & Rudolph Joseph Sanchez & Keren Tirosh-Unger, 2012. "Social Motives and Trust: Implications for Joint Gains in Negotiations," Group Decision and Negotiation, Springer, vol. 21(6), pages 839-862, November.
    4. Eric van Dijk & Varia Makagonova & Erik W. de Kwaadsteniet & Manon Schutter, 2017. "Deterrence-based trust in bargaining: Introducing a new experimental paradigm," Journal of Trust Research, Taylor & Francis Journals, vol. 7(1), pages 71-89, January.
    5. Moshe Banai & Abraham Stefanidis & Ana Shetach & Mehmet Özbek, 2014. "Attitudes Toward Ethically Questionable Negotiation Tactics: A Two-Country Study," Journal of Business Ethics, Springer, vol. 123(4), pages 669-685, September.

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