This question is based on the Ethics in Action feature at the end of Chapter 7: Is it ethical to bluff in contract negotiations? For example, bluffing in this context could be an employer saying they already had replacement workers lined up if the union strikes (when in fact they don't) or the union saying its members will strike if they don't get a 3\% wage increase (knowing that they will not strike over this). Whether you think it is ethical, it is probably pretty widespread in negotiations. Is it ethical to bluff while negotiating with an individual employee? It is common to negotiate salary, for example, with a new employee. Let's say you are authorized to pay a new employee up to $125,000 in salary. You initially offer $100,000. The employee counters by asking for $120,000. Would it be ethical to tell this employee that you are not authorized to go this high and that if they want more than $110,000 you might have to look for another candidate (even though you would be willing to give them $125,000 )? Is this different from bluffing in the collective bargaining context