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