Formation of Reputation During Negotiation

Formation of Reputation During Negotiation In preparing for negotiation, the key is to identify the other person's potential sources of power, which can come from knowledge, competition, performance and reputation” (Braff 1996). Reputation of a negotiator is significant; it remains one of the most under researched aspects of the negotiation process. Reputation is important in negotiation because it helps the other party predict moves of opponent. The concept of trust can play a critical role in the success of a negotiation. If a negotiator has a reputation of being trustworthy, it allows opponents to believe that the negotiator will act in accordance to past performances. Large number of researches shows that reputation has a positive effect on the outcome of negotiation.
Purpose of this paper is to extend the current understanding by presenting a model that explains the development process of reputation in negotiation. Model has been developed that explain how reputation is formed in a negotiation. Only one model has been discussed previously regarding formation of reputation in negotiation which was silent regarding elements that manage negotiation process in order to construct reputation of negotiator.
Effort has been made to develop a model that shows power of the actions of negotiator before and during the negotiation to create a reputation that is formed by the perceptions of the other party. Negotiator omits signals and contexts which results into creation of image by opponent before negotiation begins. During negotiation, image that was created before the start of interaction starts turning into reputation of negotiator. Three key elements which have strong implication over construction of reputation include trust, justice and relationship. On the bases of these factors, reputation of negotiator is being constructed. Reputation of negotiator is being discussed or published through Judgment and perceptions of opponents. Negotiator can gain feedback