Age and Honesty Expectations in Negotiations

Abstract: We examine the relation between age and honesty expectations in negotiations. Across two studies (N = 908), we find that younger individuals significantly underestimate other negotiators’ honesty whereas older people do so less. We show that this increased prediction accuracy is explained by older individuals’ higher positive thinking and trusting propensity compared to younger individuals. While older people’s heightened positive thinking and trust can be an advantage, particularly when trust is warranted, it can also be a pitfall and increase their susceptibility to exploitation.

Keywords: Age, trust, trustworthiness, negotiations, honesty