Ok, so you want to barter—but how?

My last post sought convince you that now—in the midst of the COVID crisis—is precisely the time to barter. In brief, the point was that many people now have little choice but to barter, that barter is a better way of negotiating with family and friends, and that barter can help us both deal with short-term shortages and become better negotiators in the long-term. In short, bartering can make life negotiable.

But this all begs an obvious question: How? That is, how to barter effectively? So in this post, let me introduce a critical feature of bartering—the double coincidence of wants—along with three critical implications for bartering better.

As noted in my last post, bartering involves trading whatever you have for whatever you want. For a direct trade to happen, however, you have to meet one very specific condition: You have to want exactly what another person has and have exactly what another person wants—a condition known as the double coincidence of wants. As implied by the name, it can be challenging to the point of utterly coincidental to find a person and trade that satisfy that condition.

But a little reflection on the double coincidence reveals at least three ways to make it less coincidental and more attainable—principles that anyone who barters routinely knows well (and anyone who seeks to negotiate effectively should too, as described below):

  1. Understand yourself holistically: The first step in satisfying the double coincidence is understanding your own side of the coincidence holistically—that is, identifying not just what you want from a bartering trade but also what you’re offering. Say you desperately need some flour for bread: That’s great, but no one’s going to give it to you if you can’t clearly articulate what you’re offering in return. And, while you’re at it, you might as well identify some other things you need—just in case they’re short on flour but happen to have some coveted toilet paper, for example.
  2. Discuss multiple issues: It’s little use identifying your need for flour and TP—or your willingness to offer papier-mâché dolls and mow their lawn—if you’re not willing to raise all these issues in the discussion. And even if you do, it’s little use unless you prompt them to do the same, to talk about whatever it is they need and can offer. Talking about all kinds of things might seem random and scattered; at first, maybe they’ll look at you funny when you mention TP and papier-mâché in the same sentence. But a seemingly random discussion of multiple needs and offerings is often the only way of satisfying the double coincidence.
  3. Seek out multiple partners: Sadly, the first person you approach may not have any flour or TP on-hand; or maybe they do but have no interest in your papier-mâché or lawn-mowing. But by approaching several people, time-consuming as it is, the double coincidence becomes substantially less coincidental. Surely someone with some flour needs some beautiful papier-mâché! Barterers know that theirs is a multiparty endeavor.

These principles, among others, will help you barter better. As described in my book, however, that’s not all! They’ll also help you negotiate better—even when you’re negotiating over money. Indeed, no negotiator can truly excel without understanding themselves holistically, discussing multiple issues, and talking to multiple counterparts. So now’s the time to barter, both for its own sake and for the benefit of your future negotiations. Hopefully these tricks of the “trade” can help you.

When and why to pick your battles: The hidden connection to logrolling

We’ve all heard the hackneyed organizational advice to “pick your battles.” But there are two interrelated and semi-obvious problems with this (and much other) advice: No one can clearly say when or why it applies.

Luckily, negotiation research has something indirectly but highly relevant to say about picking your battles. Since understanding what it is can make organizational life negotiable, let’s unravel these cryptic comments further.

The negotiation literature has not, to my knowledge, directly investigated picking your battles. But it has often investigated the negotiation strategy of logrolling, in which you make a concession on a relatively trivial issue if (and only if) your counterpart concedes on something of critical importance to you. You accept the silly financing plan if the dealer gives you the coveted discount. You agree to work on the task you secretly sorta like if your coworker relieves you of something onerous.

As you might suspect from the examples, the ability to effectively logroll is central to the ability to effectively negotiate in general. The logic is simple: It’s often considerably more satisfying to get everything you want on a really important issue (and nothing on something trivial) than is to get half of what you wanted on both.

Now what (in the world) does this have to do with picking your battles? Quite a lot, actually. Because what does it mean to pick your battles if not to let someone have their way on an issue that doesn’t really rock your world (but might rock theirs), in expectation that you’ll demand your way on a future issue capable of making your own world shudder? Put like that, the connection to logrolling is obvious: picking your battles is simply logrolling spread over time—conceding on the unimportant issues of the present in exchange for someone else’s concessions on the critical issues of the future.

If you buy the analogy, then you should find it easier to detect the situations when the advice really applies: when you’re dealing with an issue that’s trivial to you and critical to them, as well as a person you expect to depend on in the future. (If any of these conditions don’t apply, battle away!) Additionally, you should find it easier to motivate your own battle-picking since you can now see the benefits looming down the line. Most importantly, you should increasingly find yourself waging and winning the critical battles at work rather than belaboring and losing the continuous war.