Author: Hrvoje Zaric

Trust starts when one side gives first. Before there’s a deal. Before there’s a guarantee.

In the classic Game of Trust, it’s simple:

• Player A gets an amount X to start.
• They can send any amount (0-X) to Player B.
• The amount sent is tripled for Player B.
• Then B decides how much (if anything) to return to Player A.

It’s a one-shot game. No prior contract. No second chances. Only trust — or the opportunity to exploit it.

Notice the dynamic: One player must act first, must GIVE first, without knowing if the other will reciprocate.

You’ll find the same pattern in real-world B2B negotiations, albeit typically in multiple iterative exchanges. One side extends value with the hope that it will be recognized — and reciprocated. Trust becomes the “invisible currency” that builds relationship capital. And reciprocity (or lack thereof) shapes future interactions. Sometimes the first gift isn’t money — it’s flexibility, effort, a promise, even vulnerability.

Key takeaways for negotiators:

✅ Build trust early — with transparency, reliability, and responsiveness.

✅ Honor implicit agreements — not just what’s written in the contract.

✅ Small gestures of goodwill can unlock outsized cooperation.

But be mindful: Not every gift creates a mutual obligation.

Skilled negotiators recognize when a “gift” is being offered with an implied expectation and consciously choose to:

• reject it,
• accept it without being bound,
• or formalize it by acknowledging its value and explicitly incorporating it into the deal.

Where have you seen trust multiply value — or destroy it?

#Negotiation #Trust #GameTheory #B2B #Leadership #CreatingSharedSuccess

When Fairness Beats Logic

Imagine you get €100 and must split it with someone else. But there’s a catch — if they reject your offer, neither of you gets anything.

For example, you offer €10 wanting to keep €90 to yourself, and they say no. Then you get nothing, they get nothing. Game over.

Welcome to the Ultimatum Game, a classic experiment in behavioral economics. And a powerful lens on real-world negotiation dynamics.

“But rejecting free money isn’t rational!” I hear you object. Yet the experiment consistently reveals that people don’t just care about the outcome — they care about fairness, respect, and how the offer is made.

In B2B negotiations, we see this more often than you’d think:

• One side anchors hard — and the other walks, even if the deal made economic sense.
• A retailer pushes for steep discounts, but the supplier rejects, incurring short-term financial loss, to avoid setting a harmful precedent for future negotiations
• A startup declines a lucrative acquisition—not due to price, but because of disrespectful treatment.

People don’t respond to logic alone. They respond to how they’re treated and whether their needs are acknowledged.

Key takeaways for B2B negotiators:

✅ Fairness is not a soft topic — it’s a strategic variable.

✅ Power plays can backfire when they are perceived as unjust.

✅ Both the deal structure and the delivery matter: clarity, timing, tone, and process shape how offers are received.

In short: Negotiation isn’t just math. It’s psychology.

Ignore perceived fairness, and you might win the numbers on paper — but lose the deal.

#Negotiation #GameTheory #B2B #Fairness #BehavioralEconomics #Leadership #CreatingSharedSuccess

Why trust is the silent partner in every high-stakes deal

Imagine two hunters. They can either each chase a rabbit (a guaranteed but small reward) or cooperate to hunt a stag (a much bigger win, but only if both fully commit).

That’s the Stag Hunt, a classic game theory model.

And it plays out all the time in B2B negotiations. In theory, both parties benefit most by pursuing the joint optimum. But in practice, fear of being left hanging leads one or both sides to settle for a lesser but safer option.

Here’s how it shows up:

• A supplier won’t invest in custom tooling because they’re unsure the buyer will commit long-term.
• A client wants innovation, but won’t share enough information to enable it.
• A strategic partnership fails to launch because neither side wants to go first.

These aren’t failures of logic — they’re failures of trust and coordination.

In high-stakes negotiations, the size of the prize often depends on how well you can manage uncertainty, build credibility, and signal commitment.

If you want the stag, you can’t just say it, you have to show it. You need to convince the other side you’re in it with them. Build transparency into your actions. Ensure commitment is visible across various levels of the organization. Embed structures into your agreements that reinforce mutual investment.

Trust isn’t built on promises. It’s built through risks taken together.

Follow this series as we explore other real-life games that shape negotiation behavior and how to play them wisely.

#Negotiation #GameTheory #Strategy #Trust #B2B #CreatingSharedSuccess