Online bargaining and interpersonal trust

Abstract

The presented study explores the effect of interacting over the Internet on interpersonal trust when bargaining online. Relative to face-to-face negotiations, online negotiations were characterized by (a) lower levels of pre-negotiation trust and (b) lower levels of post-negotiation trust. The reduced levels of pre-negotiation trust in online negotiations (i.e., before any interaction took place) demonstrate that negotiators bring different expectations to the electronic bargaining table than to face-to-face negotiations. These negative perceptions of trust were found to mediate another aspect of the relationship, namely, desired future interaction. Those who negotiated online reported less desire for future interactions with the other party. Online negotiators also were less satisfied with their outcome and less confident in the quality of their performance, despite the absence of observable differences in economic outcome quality.