Second Thoughts About Bluffing

It is common for people to misstate their bargaining positions during business negotiations. This paper will focus on cases of the following sort: I am selling a house and tell a prospective buyer that 90,000 is absolutely the lowest price that I will accept, when I know that I would be willing to accept as little as 0, 000 for the house. This is a lie according to standard definitions of lying—it is a deliberate false statement which is...