Truth 11. Don’t lie about your BATNA

Your BATNA is your key source of bargaining power. And I’ve strictly cautioned you against revealing your BATNA. These may add up to a common temptation: Why not lie about your BATNA to claim a larger slice of the bargaining pie?

For instance, suppose I concoct a plan for getting a hefty raise: I plan to tell my boss that I have an amazing offer from another employer (this is a complete lie) and that to keep me, she must meet or beat it. Now, you try to talk me out of this deceitful plan!

You might try to talk me out of this plan by saying, “You’ll surely ruin your reputation if you lie. It’s a small world, and your boss will probably find out that you’re lying. She’ll never trust you again. You’ll lose all respect at work.” “Isn’t it important to have some integrity?” “How would you like it if someone lied to you that way? Wouldn’t you want to fire him?”

Okay, I’m beginning to see the light. Trying to bilk my boss sounds like a stinker of an idea from this ethical standpoint.

Are there any more reasons not to carry out my plan?

You might say, “Suppose your boss calls your bluff and says, ‘Congratulations on the offer. We’re proud of you and will miss you. I’m sure you’ll enjoy your new job.’”

Oh dear, you’re right again. If I lie about my BATNA, the counterparty might call my bluff, and then I would have one heck of a face-saving act to perform: “Uh, well, boss, I haven’t quite decided to take the offer, and come to think of it, my kids really like the schools here...and I don’t want to go through the trauma of a move. So never mind.”

Okay, you’ve almost convinced me not to lie. Any additional arguments?

At this point, you say, “Are you aware that lying about a material fact is prosecutable?” You show me the legal code on this and explain that if my boss enters into an agreement based upon a material fact that I have knowingly misrepresented, I can be sued.

In sum, there are three darn good reasons to never lie about your BATNA:

▪ Ethical/moral—You don’t want to behave this way because it implicitly encourages others to behave similarly, which creates a corrupt society. Plus you’ll ruin your reputation.

▪ Strategic face-saving—Just as in poker, someone can call your bluff at any time. In negotiation, there are many more “tells,” or signs that someone’s lying.

▪ Legal/contractual—Lying about a material fact (such as claiming that you have another job offer or an offer on your house that you do not in fact possess) is a criminal act that may result in prosecution or a lawsuit.