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The Illusion of Transparency in Negotiations

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The Illusion of Transparency in Negotiations
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The Illusion of Transparency in Negotiations
Leaf Van Boven, Thomas Gilovich, and Victoria Husted Medvec

The authors examined whether negotiators are prone to an “illusion of transparency,” or the belief that their private thoughts and feelings are more discernible to their negotiation partners than they actually are. In Study One, negotiators who were trying to conceal their preferences thought that their preferences had “leaked out” more than they actually did. In Study Two, experienced negotiators who were trying to convey information about some of their preferences overestimated their partners’ ability to discern them. The results of Study Three rule out the possibility that the findings are simply the result of the curse of knowledge, or the projection of one’s own knowledge onto others. Discussion explores how the illusion of transparency might impede negotiators’ success.

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n most cartoon depictions of negotiators in action (a tiny fraction of the cartoon universe, we admit), negotiators are shown with dialog bubbles depicting their overt comments and thought bubbles revealing their private thoughts. These conventions convey the different levels at which negotiators operate: Some of their wants, wishes, and worries are conveyed to the other side, but some are held back for strategic advantage. Because one task in negotiation is deciding how much information to hold back (Raiffa 1982),

Leaf Van Boven is an Assistant Professor of Psychology at the University of Colorado, Boulder, Campus Box 345, Boulder, Colo. 80309. Email: vanboven@Colorado.edu. Thomas Gilovich is a Professor of Psychology at Cornell University, Department of Psychology, Ithaca, N.Y. 15850. Email: tdg1@cornell.edu. Victoria Husted Medvec is the Adeline Barry Davee Associate Professor of Management and Organizations at Northwestern University’s Kellogg School of Management, 2001 Sheridan Road, Evanston, Ill. 60201. Email:vhm@kellogg.northwestern.edu.



References: Barr, C. L. and R. E. Kleck. 1995. Self-other perception of the intensity of facial expressions of emotion: Do we know what we show? Journal of Personality and Social Psychology 68: 608-618. Bazerman, M. H. and M. Neale. 1992. Negotiating rationality. New York: Free Press. Camerer, C., G. Loewenstein, and M. Weber. 1989. The curse of knowledge in economic settings: An experimental analysis. Journal of Political Economy 97: 1232-1253. Epley, N. and T. Gilovich. 2001. Putting adjustment back in the anchoring and adjustment heuristic: An examination of self-generated and experimenter-provided anchors. Psychological Science 12: 391-396. Gilovich, T. D., K. K. Savitsky, and V. H. Medvec. 1998. The illusion of transparency: Biased assessments of others’ ability to read our emotional states. Journal of Personality and Social Psychology 75: 332-346. Gordon, R. A. and P. J. Vicarii. 1992. Eminence in social psychology: A comparison of textbook citation, social science citation index, and research productivity rankings. Personality and Social Psychology Bulletin 18: 26-38. Keysar, B. and B. Bly. 1995. Intuitions about the transparency of intention: Linguistic perspective taking in text. Cognitive Psychology 26: 165-208. Keysar, B., L.E. Ginzel, and M. H. Bazerman. 1995. States of affairs and states of mind: The effect of knowledge on beliefs. Organizational Behavior and Human Decision Processes 64: 283293. Raiffa, H. 1982. The art and science of negotiation. Cambridge, Mass.: Harvard University Press. 130 Van Boven, Gilovich, and Medvec The Illusion of Transparency in Negotiations Savitsky, K. 1997. Perceived transparency of and the leakage of emotional states: Do we know how little we show? Unpublished doctoral dissertation, Cornell University. Thompson, L. 1990. An examination of naïve and experienced negotiators. Journal of Personality and Social Psychology 26: 528-544. ———. 1991. Information exchange in negotiation. Journal of Experimental Social Psychology 27: 161-179. Tversky, A. and D. Kahneman. 1974. Judgment under uncertainty: Heuristics and biases. Science 185: 1124-1131. Vorauer, J. D. and S. Claude. 1998. Perceived versus actual transparency of goals in negotiation. Personality and Social Psychology Bulletin 24: 371-385. Negotiation Journal April 2003 131

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