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Online bargaining and interpersonal trust.

Charles E Naquin¹, Gaylen D Paulson

¹Mendoza College of Business, University of Notre Dame, Indiana 46556, USA. charles.naquin.1@nd.edu

The Journal of Applied Psychology

|April 5, 2003

Summary

Online bargaining reduces interpersonal trust compared to face-to-face negotiations. This impacts trust before, during, and after interactions, decreasing desires for future engagement.

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Area of Science:

Psychology
Communication Studies
Behavioral Economics

Background:

Interpersonal trust is crucial for successful negotiations.
The rise of internet-based interactions necessitates understanding trust dynamics in online bargaining.

Purpose of the Study:

To investigate the impact of online interaction on interpersonal trust during bargaining.
To compare trust levels in online versus face-to-face negotiations.

Main Methods:

Comparative analysis of negotiation outcomes.
Assessment of pre- and post-negotiation trust levels.
Evaluation of desired future interactions and satisfaction.

Main Results:

Online negotiations exhibited lower pre-negotiation and post-negotiation trust than face-to-face.
Reduced trust in online settings mediated lower desire for future interactions.
Online negotiators reported decreased satisfaction and confidence, irrespective of outcome quality.

Conclusions:

Internet-mediated bargaining inherently lowers interpersonal trust.
Negative trust perceptions in online negotiations affect relationship continuation and negotiator confidence.
Strategies may be needed to build trust in electronic negotiation environments.

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