Three is more than two in more ways then one

Coalition formation is the process in which coalition members decide how to allocate payoffs to those that are included in and excluded from the coalition. This definition would suggest that people are aware that being included in a coalition is paramount. Yet, I argue that people fail to appreciate the dominance of being included. More specifically, I propose that people use negotiation tactics that have proven their success in dyadic interactions and act as if inclusion in a coalition is a given. Using examples of our lab's research on deception, emotions, and allocation rules I demonstrate that this failure to appreciate inclusion yields potentially disastrous coalition outcomes for people who control more resources than other people. (e.g., political parties that obtained most votes after elections in multi-party government formation, highly successful firms who want to join forces with other firms, very attractive individuals who are seeking a romantic partner).