Bluffing and Deception

Abstract

Deception can be defined as intentionally causing someone to have false beliefs. Bluffing in negotiations involves attempting to deceive others about one's intentions or negotiating position. In the United States it is common, often a matter of course, for people to misstate their intentions during business negotiations. For example, suppose that Bob is selling a house and tells a prospective buyer that $350,000 is absolutely the lowest price that he will accept, when he knows that he would be willing to accept as little as $320,000 for the house (in this case $320,000 is his “reservation price”). Arguments for and against the view that this is permissible are considered. In sales and negotiations sellers often provide prospective buyers information about the goods or services being sold. Ths legal principle of caveat emptor permits sellers to withhold information about the products they serve, but forbids lying and deception about this. Few defend lying or deception in sales, but the permissibility of withholding information about the nature of the goods and services one sells is the subject of some debate.