Positive illusions and how they affect negotiations

Scientific research shows that many negotiation errors are caused by motivational distortions/positive illusions.

Scientific research shows that many negotiation errors are caused by motivational distortions/positive illusions. They influence the quality of negotiators' decision-making, reduce the overall added value that can be achieved together, and are often the basis for conflicts. In the mid-1980s, research in social psychology focused in the so-called positive illusions. These include excessively positive self-perception, unrealistic optimism, illusion of control, and self-righteous attributions. The four motivational biases are at least as important in negotiation situations as the cognitive biases. We have already addressed the topic of excessive self-confidence.

We as individuals tend to overestimate our own capabilities. Like the lucky Gustav Gans from Duckburg. Overconfidence affects our level of honesty, our ability to cooperate, our rationality, our ability to negotiate well, but also our intelligence, our health and... our ability to drive. Let's be honest, you're probably a better driver than the average person, aren't you?‍SELF-AWARENESS AND OPTIMISM

Overly positive self-perception often occurs alongside unrealistic optimism. So with the tendency to assume that our future will be better than that of other people. For example, researchers have found that we cling to the belief that we can accomplish more in a single day than is actually possible. And we persistently ignore the "reality feedback" that clearly shows us the limits of our capabilities. Those who make long daily to-do lists know exactly what I'm talking about. A 1991 study shows that overly positive self-perception also occurs in negotiation situations. In the study, MBA students were asked to estimate the outcome of an upcoming negotiation. 68% believed their results would be in the top 25% of all participating negotiators. Statistically, that's impossible.‍ILLUSION OF CONTROL

We also fall into the belief that we can control uncontrollable events and overestimate the impact of our actions on a given outcome. Negotiators believe that they have more control over the behavior of the other party, the timing, and the framework of the negotiation than they really do. This often leads to superstitions and strange routines (wearing a certain item of clothing, different preparation rituals, or, in the case of players, the belief that rolling the dice tenderly tends to produce lower numbers).‍MORRIFIC ATTRIBUTIONS

Moralistic attributions occur when we need to explain the causes of a particular situation. We tend to take a disproportionately larger part of the success of a particular action than the failure. When negotiators achieve a good result, they cite a variety of reasons that are personal to them. Situational framework conditions are often to blame for the failure of negotiations. The reasons for failure are sought in other things or people. However, by doing so, we reduce the incentive to adapt one's behavior and strengthen one's problem-solving skills. This behavior is noticeable, for example, when asking about the causes of global warming. Western countries accuse developing countries that deforestation and overpopulation are the main causes. These countries respond that industrialization and excessive consumption are the main reasons. The four reasons mentioned are actually drivers of development. Except perhaps in the eyes of the Trump Administration.

Also when we judge other people, we often fall into positive illusions. People tend to put down others who are more successful than they are. For example, when other negotiators are able to achieve better results, we attribute those successes to unethical tactics, questionable practices and incentives, and selfish behavior. Studies show that as soon as negotiators rate themselves better than others on certain criteria, they rate the remaining negotiators worse than average on the same criteria. negotiators?

After all, a good dollop of self-confidence can give the entire negotiation process a necessary boost. After all, without these positive illusions, there would be no entrepreneurs willing to take risks. Positive illusions help people to believe in a just world, to believe that they have control over most things in their lives, and to face each day with optimism. While this is correct, the associated disadvantages outweigh the disadvantages in the most negotiation situations. Negotiators who overestimate their own abilities and underestimate those of the other party have difficulty understanding and appreciating their negotiating partner's perspective. You always have the feeling that you have done more than the other party and that you have adapted more to the other person. The probability of a zero-sum game is high, even if there is objective room for negotiation. If the deal fails, it's usually because of the other person, the situation, or other framework conditions. If the strength of one's position is overestimated, agreements break down, conflicts arise, or countries go to war with each other.

---

ISMAN & Partner is a management consultancy that supports national and international corporations, medium-sized companies and start-ups, organizations and institutions in complex processes of negotiation and conflict resolution. Founded in 2015 by Calin-Mihai Isman, negotiation and mediation experts support managers and employees in sales, purchasing, M&A, recruitment, human resources or IT.

---