Leverage (negotiation)

In negotiation, leverage is the power that one side of a negotiation has to influence the other side to move closer to their negotiating position. A party's leverage is based on its ability to award benefits or impose costs on the other side.[1][2] Another conceptualization holds that the party that has the most to lose from a "no deal" outcome has less leverage than the party that has the least to lose.[3]

Leverage has been described as "negotiation's prime mover," indicating its important role in bargaining and negotiation situations.[4] Individuals with strong leverage can sometimes overcome weak negotiating skills, whereas those with poor leverage have a reduced likelihood of being successful even if they have strong negotiating skills.

  1. ^ F., Kirgis, Paul (2014-01-01). "Bargaining with Consequences: Leverage and Coercion in Negotiation". Harv. Negot. L. Rev. 19.{{cite journal}}: CS1 maint: multiple names: authors list (link)
  2. ^ Shell, G. Richard (2006-05-02). Bargaining for Advantage: Negotiation Strategies for Reasonable People 2nd Edition (2 ed.). Penguin Books. ISBN 9780143036975.
  3. ^ Shell, G. Richard (2006-05-02). Bargaining for Advantage: Negotiation Strategies for Reasonable People. Penguin. p. 85. ISBN 9781101221372. leverage negotiation dynamic.
  4. ^ Lee, Hetherington, H. (1995-01-01). "Negotiating Lessons from Iran: Synthesizing Langdell & Maccrate". Catholic University Law Review. 44 (3).{{cite journal}}: CS1 maint: multiple names: authors list (link)