In all aspects of negotiation and conflict among individuals and among groups, there are fundamental theoretical questions concerning biases in human judgment and decision-making. This project examines the role of social perception in the development, maintenance and revision of judgment error in interpersonal conflicts. The first line of investigation examines basic social perception processes in negotiation and factors that may reduce biases in social perception. These studies focus on whether judgment error in negotiation is primarily due to biases in the reception of information or faulty communication or information exchange. The dynamic effect of the two processes is also explored in an investigation of behavioral confirmation in negotiation. This investigation examines how perceivers' expectancies influence their behavior toward their opponent and may elicit expectancy-confirming behavior from the opponent. The second line of research investigates social categorization processes and negotiation. These studies examine whether negotiations with members of one's own social group are more or less productive than negotiations conducted with members of an outside group. In addition, these studies examine how the quality of negotiated agreements conducted with out-group members is affected by the degree to which one's performance affects the welfare of his or her group. These studies have important practical implications for enhancing the quality of interpersonal negotiations and intergroup relations.