Behavioral Economics
How Deal-Making Actually Works—And Why It Can Feel So Unsettling
Deal-making is an evolving and complex dance seen in both animals and humans.
Posted April 24, 2025 Reviewed by Abigail Fagan
Key points
- Deal-making is rarely linear—it's a complex, evolving process shaped by responses and adaptations.
- Animals like chimps and monkeys engage in strategic exchanges, mirroring human negotiation tactics.
- Changing an offer doesn’t mean losing—it reflects flexibility essential for making any deal work.
If you’ve been following the news lately, you’ve probably noticed that deal-making has taken center stage. Whether it’s trade agreements between nations, political negotiations over funding, or diplomatic talks that feel more like standoffs, we’re inundated with coverage. And while it’s tempting to view these negotiations as either "successful" or "failed" based on a single offer, that interpretation misrepresents the true nature of how deals are made.
What often gets overlooked—by both the media and the politicians themselves—is just how complex deal-making actually is. Not only does it involve more back-and-forth than most people expect, but the process often mimics patterns we’ve seen throughout the animal kingdom. That’s right—deal-making isn’t uniquely human. The fundamentals of negotiation, compromise, and reciprocity are ancient and widespread, deeply rooted in the behavior of social species. And understanding that might help us feel a bit less anxious when things don’t go as linearly as we’d hoped.
The Media's Illusion of the One-Shot Deal
Let’s start with what we usually see on the evening news: a politician announces a “firm” offer. They draw a line in the sand, present their terms, and declare that it’s now up to the other side to accept or reject them. When the other side doesn’t jump to agree—or worse, counters with a different proposal—suddenly commentators speculate about whether the first party is “losing” or “caving.”
But this narrative is misleading. In reality, most offers aren’t truly final. They’re initial positions, framed to look decisive but often intended to invite negotiation. The anxiety that follows—especially when silence, counter-offers, or shifting terms appear—comes from the false belief that deal-making is a straightforward event rather than a dynamic, responsive process.
What Chimps and Capuchins Teach Us About Deals
To better understand what’s really going on, we can look to the animal kingdom. In his article “How Animals Do Business,” primatologist Frans de Waal (2005) describes how chimpanzees, for example, regularly engage in reciprocal exchanges. A chimp might groom a higher-ranking individual not just for hygiene but as a strategic move—an offer of goodwill in exchange for later support during a conflict.
Capuchin monkeys, meanwhile, demonstrate an understanding of fairness and equity. In experiments where they were offered trades, they became visibly upset if they saw others receiving better deals for the same effort. They would sometimes even refuse to participate in what they perceived as unfair exchanges, a kind of deal-withdrawal that mirrors human negotiations breaking down over perceived imbalance.
These behaviors aren’t random. They involve calculated risk, recognition of previous interactions, and a willingness to adapt one’s approach depending on the partner’s response. In short, these animals are deal-makers.
The Unspoken Rule: “This Is My Final Offer (Until It’s Not)”
Consider how a negotiation often starts: One party lays out an offer, strongly implying it’s their best and final one. If asked outright whether they’d budge, they might say no—not because they won’t, but because revealing flexibility early would weaken their perceived position.
But if the other side shows resistance or floats a counter-offer, suddenly the “firm” position begins to soften. This doesn’t mean the first party has lost resolve. It simply reflects the nature of deal-making: assessing the likely outcome, recognizing when a standstill will lead to failure, and shifting course to preserve the possibility of agreement.
This same dynamic plays out in animal groups. In collective decision-making, such as when a group of animals must choose which direction to travel, individuals with strong preferences may initially push their own choice. But if it becomes clear that consensus won’t form around their idea, they’ll compromise. Research by Leonard et al. (2012) found that even animals with directional preferences will yield to group pressure when it becomes obvious that insisting will stall movement entirely. Like a diplomat walking back their “final” proposal, they aren’t surrendering—they’re choosing to keep the group moving.
Why Deal-Making Is So Uncomfortable to Watch
For those not directly involved in negotiations—like citizens watching international diplomacy unfold—deal-making can feel frustrating and even frightening. One week a leader claims they will “never” agree to certain terms, and the next week they’re sitting down with the other side discussing those very terms.
This doesn’t reflect weakness or dishonesty. It reflects the reality that deal-making is an iterative, trial-and-error process. Offers are floated, tested, rejected, revised. Much of what happens is hidden from public view, but what we do see can appear inconsistent or disorganized—unless we understand the process for what it is.
There’s also a psychological quirk at play here: people crave predictability. Watching a negotiation in motion—especially one that involves high stakes like national security or economic stability—can trigger anxiety when it doesn’t resolve neatly. We want assurances. We want a single, firm offer to either be accepted or not. What we get instead is a dance, with all the improvisation, hesitation, and sudden pivots that dancing involves.
The Evolutionary Advantage of Staying Flexible
One of the key takeaways from studying both humans and animals is that adaptability is not a sign of indecision—it’s a strength. Whether it’s a chimp changing grooming partners to build new alliances or a nation adjusting trade demands based on shifting geopolitical conditions, the ability to pivot in response to feedback is essential for successful negotiation.
Deal-making is not about dominating the conversation or sticking to a single line no matter what. It’s about reading the room—sometimes literally—evaluating outcomes, and deciding which adjustments will move things closer to resolution.
Final Thoughts
So the next time you hear a politician revise their offer or see a negotiation stall and restart, take a breath. What might seem like floundering could actually be a very sophisticated form of engagement. Just like our primate cousins, we’re all working with limited information, past experiences, and hopes for mutual gain. Changing course isn’t giving in—it’s staying in the game.
In the end, whether it's a troop of monkeys sharing bananas or two governments negotiating over steel tariffs, the core principles of deal-making are the same: present an offer, wait, read the response, and adapt if necessary. The deal isn't dead just because it's evolving. More often than not, that's what keeps it alive.
References
de Waal, F. B. M. (2005). How Animals Do Business. Scientific American, 292(6), 72–79. https://www.scientificamerican.com/article/how-animals-do-business-2005-06/