Fairness

Abstract

There are many situations where negotiators talk about fairness. Negotiators may claim that what they are asking for is fair or that the other party is being unfair. The claims may relate to outcomes or to process and are often the basis for failure to reach mutually beneficial outcomes. Perceptions of fairness, or more accurately unfairness, are often accompanied by negative emotions. These negative emotions override individuals’ impulses to look for a good bargain leading them to ‘irrationally’ reject a seemingly good outcome. A good example of where fairness issues override the desire for self-gain is the ultimatum game that we discussed in the first chapter. In this game, people reject small offers (that are clearly of some value) and take nothing for themselves in order to ensure fairness.