leverage (negotiation)


  • Neither party’s interests are advanced by negative leverage except for the gain that the party employing the leverage may get towards their ultimate desired outcome from the

  • [5] In order for a negotiating side’s leverage to work in their favor, the threats or promises they put forth must be perceived as credible by the opposing group.

  • The improper use of negative leverage can put the opposing party in duress, leading them to make decisions that they normally would not if they had free will.

  • [7] Negative leverage[edit] Negative leverage is a threat-based form of leverage that represents one side’s ability to make the other side worse off.

  • Positive leverage is based in the ability of one party to satisfy the needs of another party.

  • As time moves forward, leverage can shift if one group needs to come to a resolution sooner than the other.

  • This does not mean that the threats and promises have to be based in facts, but the opposing group must believe that a specific threat or promise can be carried out and that
    it would make them better or worse off compared to the other side.

  • Improving leverage Since leverage changes over the course of a negotiation, a party’s leverage can be improved through a number of ways.

  • [2][6] Generally, the side or group that is most in need of an agreement has the least leverage.

  • The strength of this type of leverage is determined by the other alternatives available to the opposition (often referred to as the “BATNA” or the best alternative to a negotiated

  • The power from positive leverage comes from the opportunity to provide or withhold the needed item or action.

  • [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.

  • [2] Gathering information about the opposition and limiting the release of information about your position can help a party gain or maintain leverage.

  • If there are others who can also fulfill the opposition’s needs, then the leverage is weakened since the opposition can go elsewhere to receive what they need.

  • [2] Leverage can be measured qualitatively in terms of how much one side has to lose from not coming to an agreement.


Works Cited

[‘1. F., Kirgis, Paul (2014-01-01). “Bargaining with Consequences: Leverage and Coercion in Negotiation”. Harv. Negot. L. Rev. 19.
2. ^ Jump up to:a b c d e f g h i j k l m 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).
5. ^ Kennedy, Gavin (2009). Essential Negotiation: An A to Z Guide, Second edition. New York: Bloomberg
Press. p. 132. ISBN 9781576603529.
6. ^ Jump up to:a b Volkema, Roger J. (2006-01-01). Leverage: How to Get It and How to Keep It in Any Negotiation. AMACOM Div American Mgmt Assn. ISBN 9780814426968.
7. ^ Jump up to:a b Dictionary of American
history. Kutler, Stanley I. (3rd ed.). New York: Charles Scribner’s Sons. 2003. ISBN 0684805332. OCLC 50404043.
8. ^ Cooley, John W. (2006). The Mediator’s Handbook: Advanced Practice Guide for Civil Litigation, Second edition. National Institute
for Trial Advocacy. p. 215. ISBN 9781556819940.
9. ^ Nozick, Robert (2013-11-12). Anarchy, State, and Utopia (Reprint ed.). Basic Books. ISBN 9780465051007.
Photo credit: https://www.flickr.com/photos/blumenbiene/4440480869/’]