Trust in a Negotiation

By: James Milam

The Three Types of Trust

• Deterrence-based trust:
• Trust based on the consistency of a person’s behavior.
• Knowledge-based trust:
• When one party trust another based on their behavioral
predictability.
• Identification-based trust:
• Occurs when there is a connection between the two
parts which results in the parties empathizing with
each other’s intentions.
Scenario Where Trust Benefits a Party

• Scenario: There is a negotiation between two friends where

one is selling a car to the other. In this situation, both
friends are trying to make a deal that will benefit both
sides.
• What are the different types of trust involved in this
scenario?
• All three trust can be involved but identification-
based trust may be most important in making a
good deal for both sides.
Scenario Where Lack of Trust Negatively
Affects the Outcome of a Negotiation

• Scenario: There is a similar negotiation between two friends where

one is selling a car to the other. Yet, in this deal, one of the friends
is secretly trying to get a deal in which they benefit much more
than their friend.
• What are the different types of trust involved in this scenario?
• Just like before, identification-based trust will drive the
beginning of negotiation, but lack of deterrence-based
trust will cause an impasse.
Key points about trust.

• There are three types of trust:

• Deterrence-based trust: involves behavioral consistency

• Knowledge-based trust: involves behavioral predictability

• Identification-based trust: involves an emotional connection that drives empathy.

• It is important to try to gain all three types of trust.