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Common mistakes negotiators make when sharing information


Sharing information builds trust which is the basis for any long term relationship and good outcomes. The art is to understand what information is appropriate to share, what should be kept for a later time and what information can’t be shared. Sharing information also calls for reciprocity meaning that the other party feels obliged to give something in return, in this case also share information. Social psychologists call it The Law of Reciprocity, meaning that when you get something you have the urge to reciprocate and give something in return which in many cases can be far more generous.
While information sharing builds trust it is important that before going into a negotiation one must calculate the risks and benefits of sharing information with their counterpart. A common mistake people make is that they share too much information. Sharing too much information can damage your position of power because information is power and the more the other party knows about you and your position the more they are able to use that information against you. The party with more information is generally in charge and is able to steer the negotiation.
Ego is often one major reason why people give too much information away. They want to be seen as someone who knows everything and is never short of an answer. This is however not always appropriate and can damage your position.
When preparing for an upcoming negotiation it is important to be strategic with the information you are going to share and the timing of when you are going to share that information. At the same time you need to think about what information you cannot share with the other party. This could be company internal and commercially sensitive information.
The best approach is to list the information that is needed to resolve a dispute or come to a good deal. Secondly think about the information the other party may need in order to consider a deal.
Preparation is the key to make sure you don’t give away your position of power in the negotiation.

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