Bluffing has been a part of human interaction for as long as we’ve been negotiating. From card tables to corporate boardrooms, we instinctively “signal strength” to influence others. But what exactly is a bluff? Where’s the line between acceptable strategy and outright deception? And how can you practise dealing with bluffs - whether you’re using them or spotting them?

At The Negotiation Club, we believe in practical practice: it’s not enough to talk about tactics like bluffing - you need to experience them, test them, and understand their risks before you decide whether they have a place in your negotiation style.

What is Bluffing?

"Bluffing is a strategic exaggeration or concealment used to influence the other side’s decisions without making a precise, verifiable false statement."

It’s closely related to:

• Puffery:

Harmless exaggeration, such as saying a product is “world-class” or “best in the market.” In UK law, puffery is legal because no reasonable person would take it literally.

• Misrepresentation:

A false statement of fact that leads someone to make a deal. This is illegal and can lead to rescission of the contract and damages.

Quick Rule of Thumb:

If you make a statement that can be objectively checked—price, stock levels, delivery times.... and it’s false, that’s not bluffing, it’s misrepresentation.

If you’re signalling intentions, preferences, or non-binding positions, you’re more likely still in bluffing territory.

Why Do We Bluff?

Bluffing stems from asymmetric information.... a core concept in negotiation and game theory. One side usually knows more than the other and both sides try to shape perceptions.

Common reasons people bluff:

• Gain leverage: By hinting at alternatives or stronger positions, negotiators can extract better terms.
• Protect information: Revealing your true limits too early may weaken your position.
• Create options: A well-timed bluff can encourage creativity and open the door to trades that wouldn’t have been explored otherwise.
• Delay decisions: In complex negotiations, bluffs can buy time while gathering more data or building consensus.

Research shows most people are reluctant to lie outright, but many will “shade the truth” when it feels justifiable and the benefits are high. (Gneezy, 2005)

Bluffing in Everyday Life

You may think bluffing only happens in high-stakes negotiations, but we encounter it constantly in everyday situations:

• Poker and games: The classic arena for bluffing, where hiding your true hand is the rule, not the exception.
• Job interviews: Candidates hint at competing offers to improve salary discussions.
• Parenting: “If you don’t tidy your room, there’ll be no screen time tonight!” (even if you don’t plan to enforce it).
• Sales and marketing: “Best in class” or “unbeatable value” slogans are examples of legal puffery.
• Social interactions: Curating our image on social media is, in a sense, a form of bluff—projecting a version of ourselves to influence how others see us.

Bluffing is part of human nature. The question isn’t whether it exists, but how ethically and strategically we use it.

Types of Bluffs in Negotiation

Here are some of the most common bluffing tactics you’ll see (or might be tempted to use):

The 'Value' Bluff

Exaggerating the value or cost of something. A supplier says, “This is our best price, there’s no room left to move,” when there is.

The 'Intention' Bluff

Signalling an action you don’t truly plan to take. “If we don’t reach a deal today, we’ll walk away.”

The 'Authority' Bluff

Suggesting higher approval barriers than really exist. “I’ll need to get senior management sign-off; they never approve less than a 12-month term.”

The 'Alternative (BATNA)' Bluff

Claiming you have other offers or options when you don’t. A candidate hints at another job offer to boost salary.

Rewards and Risks of Bluffing

Like any powerful tool.... bluffing has two sides!

Potential Rewards:

• Short-term gains: Strong signals can secure better prices, terms, or concessions.
• Psychological leverage: The other party may make concessions simply to avoid a perceived risk.

Serious Risks:

1. Legal Consequences

In the UK, making a false statement of fact during negotiations can constitute misrepresentation, which may invalidate the contract and result in damages.

Businesses are also subject to the Digital Markets, Competition and Consumers Act (DMCC), which cracks down on misleading actions or omissions.

2. Relationship Damage

Once a bluff is exposed, trust is eroded.

Future negotiations become slower and more adversarial as the other side double-checks everything you say.

3. Reputation Risk

In today’s interconnected world, one exposed bluff can spread quickly, harming your personal or organisational brand.

4. Ethical Backlash

Some negotiators hold a strict “never deceive” standard. Even a minor bluff may offend them and shut down collaboration.

The Ethics Debate

The question of whether bluffing is morally acceptable has been debated for decades.

• The Poker School

Popularised by Albert Carr (1968), this view sees business negotiation as a game with its own rules. Bluffing is acceptable, just like in poker.

• The Idealist School

Advocates absolute honesty. Deception is never acceptable, even if it’s legal.

• The Pragmatist School 

Takes a middle path, considering context, consequences, and values before deciding.

At The Negotiation Club, we don’t tell you which school to follow... we help you practise, so you can decide where you stand.

Recognising Bluffs: How to Defend Yourself

Just as important as knowing how to bluff is knowing when you’re being bluffed.
Here are some practical tips:

1. Ask clarifying questions:

Push for specifics—bluffs often crumble under scrutiny.

Example:

Seller: “We’ve had lots of other offers.”

You: “That’s interesting. Which regions are they from?”

2. Look for Verifiable Signals:

• True constraints usually come with evidence: policies, market data, or hard costs.
• Bluffs rely on vagueness.

3. Use Silence Strategically:

• Sometimes the best response to a bluff is to say nothing and let the other side fill the silence.

4. Practise Observation:

• In our club sessions, observers track micro-movements and body language to spot tells and inconsistencies.

Safer Alternatives to Bluffing

If you’re uncomfortable with bluffing or want to reduce your risk then try these tactics instead:

• Use Ranges instead of Absolutes:

“We’re considering terms between 12 and 18 months” instead of “We must have 18 months.”

• Make Contingent Offers:

“If you can deliver by March, we can agree to a higher price.”

• Anchor with References, not falsehoods:

Use market data or industry benchmarks to frame discussions.

• Withhold information without lying:

You don’t need to reveal everything—you just need to avoid making false claims.

How to Practise Bluffing Safely

At The Negotiation Club, we create safe, structured environments where you can test bluffing tactics without real-world consequences.

Suggested Club Exercises:

1. Spot-the-Bluff Drill

• Pairs negotiate using 2- or 3-variable cards.
• Observers tag statements as fact, opinion, or intent.
• Debrief on which bluffs were spotted and how they affected trust.

2. Credibility Ladder Exercise

• Negotiators must build trust without revealing confidential information.
• Points are scored for using verifiable signals rather than uncheckable claims.

3. Ethics Triad Hot-Seat

• Participants declare themselves as Poker, Idealist, or Pragmatist negotiators before the round.
• After the exercise, they reflect on the consequences of their chosen approach.

Key Takeaway: Understand Before You Use

Bluffing is part of human nature and a legitimate negotiation tactic when used carefully.
But it comes with significant legal, relational, and ethical risks.

By practising in a safe environment, you can:

• Recognise when others are bluffing.
• Decide where you stand ethically.
• Build alternative strategies that achieve the same leverage without the same risk.

At The Negotiation Club, our goal isn’t to encourage deception... it’s to help you understand the reality of negotiation so you can navigate it with confidence.

If you’d like to experience these exercises first-hand, join one of our professional club meetings or sign up for a free taster session.

You’ll discover not just how to bluff—but how to read bluffs, counter them, and build real negotiation skills through practice.

About the Author Philip Brown

Phil Brown is the founder of The Negotiation Club, a training organisation built on the belief that negotiation is a skill developed through practice, not theory. With 30 years of procurement and commercial experience, Phil now helps professionals worldwide build confidence and fluency through structured, repeatable negotiation practice. Experience Phils unique negotiation practice at a FREE NEGOTIATION TASTER ....

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