In all of negotiation, there is no bigger trap than "fairness." This chapter from the Negotiator's Fieldbook explains why among multiple models of fairness, people tend to believe that the one that applies here is the one that happens to favor them. This often creates a bitter element in...

A growing body of evidence suggests that an important reason why firms do not change prices nearly as much as standard theory predicts is out of concern for disrupting ongoing customer relationships because price changes may be viewed as unfair. Existing models that try to capture this concern...

In this paper, we develop a model that captures the potential conflict between two individuals who follow different fairness principles in bargaining. This model is used to analyse the influence of fairness motivation on the possibility of reaching an agreement in bargaining, and to examine the...