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What is Reciprocity in Negotiation?

Published in Negotiation Principles 4 mins read

Reciprocity in negotiation is fundamentally about the exchange of something similar or like in return for something given by one party to another.

At its core, reciprocity embodies the act of making a similar or like exchange of something in return for something given by one party to another party. In the context of negotiation, this principle is applied through various forms of give-and-take between the involved parties. Based on the provided reference, in a negotiation, this could specifically entail an exchange of information and/or an exchange of concessions between the negotiating parties.

Understanding the Principle of Reciprocity

Reciprocity is a powerful social norm that suggests we should respond to others in kind—positive actions should be met with positive actions, and concessions with concessions. In negotiation, it acts as a driving force, encouraging movement towards an agreement. When one party makes a gesture, whether it's sharing information or offering a concession, the other party often feels a psychological obligation to reciprocate.

Key Aspects of Reciprocity in Negotiation

Reciprocity manifests in practical ways during negotiations:

  • Building Trust: Exchanging information or making small concessions early can build trust and open communication channels.
  • Encouraging Movement: Offering a concession signals a willingness to compromise and can prompt the other party to do the same, preventing deadlocks.
  • Establishing Fairness: Parties often feel a negotiation is fair if there's a sense of balanced exchange, even if the value of what's exchanged isn't identical.

Types of Exchanges

As highlighted, reciprocity in negotiation involves two primary types of exchanges:

  1. Exchange of Information: Sharing relevant facts, needs, or perspectives can help both sides understand the issues better and potentially find mutually beneficial solutions. This is often the first step in building rapport and demonstrating good faith.
    • Example: Party A explains their critical need for a faster delivery schedule. Party B reciprocates by explaining their production capacity limitations but offers potential alternative scheduling options.
  2. Exchange of Concessions: This is perhaps the most common form of reciprocity. It involves one party giving up something of value (e.g., price, terms, deadline) in the hope or expectation that the other party will do the same.
    • Example: Party A lowers their asking price. Party B reciprocates by agreeing to a slightly longer contract term.

The Dynamics of Giving and Receiving

The success of reciprocity in negotiation often depends on how these exchanges are managed.

Action Potential Impact
Giving First Can build trust, may prompt return
Matching Offers Creates balance, maintains momentum
Over-reciprocating Can lead to being taken advantage of
Under-reciprocating May signal unwillingness to cooperate

Practical Insights for Using Reciprocity

  • Be Mindful of Initiating: Sometimes making the first concession can be strategic, but it should be calculated, not just a giveaway.
  • Match, Don't Just Give: Aim to match the other party's level of concession rather than automatically giving back more.
  • Acknowledge Reciprocation: Explicitly recognize when the other party reciprocates your offer or information sharing. This reinforces the behavior.
  • Be Patient: Reciprocity doesn't always happen instantly.

Reciprocity is a fundamental principle that smooths the path toward agreement by fostering a sense of mutual obligation and encouraging a balanced exchange of value, whether it's information or tangible concessions.

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