When bargaining is moving smoothly, toughness is counterproductive. Excessive toughness in bargaining could be a particularly bad strategy in buyer-seller interactions where future interactions were expected. If one party always chose a very tough stance, the other party will develop a similar approach to the bargaining interaction. This could result in lower transaction costs, good future agreements, and, where possible, continuance of the bargaining opponent.

Question

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Excessive toughness in bargaining, especially in ongoing buyer-seller relationships, can lead to increased conflict, mistrust, and potentially higher transaction costs, making future agreements more difficult and possibly jeopardizing the continuation of the relationship.

When Bargaining Is Moving Smoothly, Toughness Is Counterproductive