Costs of Lying
Former Senator Sam Ervin once remarked that “the problem with lying is you have to remember too damn much” Several costs or disadvantages are associated with lying, the first being that the liar can be caught and face criminal charges. Even if the liar is not caught, one’s reputation and trustworthiness can be damaged. This event, when it happens repeatedly, can then lead to culture in which everyone in the organization lies and general suspiciousness increases. Lying also may not be strategic: Because a negotiator who lies about his or her reservation price effectively decreases the size of the bargaining zone, the probability of an impasse increases.