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Biases and Ethical Problems in Negotiations - Explained

How Biases Give Rise to Ethical Issues

Written by Jason Gordon

Updated at April 15th, 2022

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Table of Contents

How Bias Causes Ethical Problems in Negotiation?What is Bounded Ethicality? What is the Illusion of superiority? What is the Illusion of Control? What is the Overconfidence Effect? 

How Bias Causes Ethical Problems in Negotiation?

Numerous cognitive biases stand in the way of individuals determining or choosing what is an ethical course of conduct. Below are some common biases related to ethics. 

Back to: Negotiations & Communications

What is Bounded Ethicality? 

Bounded Ethicality refers to the limits of people to make ethical decisions because they are either unaware or fail to fully and deliberately process information.

What is the Illusion of superiority? 

People view themselves and their actions much more favorably than others view them. People focus on their positive characteristics and downplay their shortcomings. In relative terms, people believe they are most honest, ethical, capable, intelligent, courteous, insightful, and fair than others.

What is the Illusion of Control? 

People believe they have more control over events than they really do; often feel they can control outcomes; can lead to a type of gambler's fallacy in decision making, however, it can also give rise to ethical problems, such as when people make claims of quality control that cannot be met.

What is the Overconfidence Effect? 

Most people are overconfident about their knowledge. For example, people claim to be 75% certain, but data shows that they are actually correct only 60% of the time. With this in mind, people who have unmet goals are more likely to engage in unethical behavior. 

Related Topics

  • What are ethics and how are they implicated in negotiations?
  • What human biases give rise to ethical problems in negotiations?
  • How can negotiators determine and calibrate ethical behavior?
  • What are unethical tactics?
  • What are the consequences of acting unethically?
bias in negotiations ethics and bias

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