Bargaining Power Definition
Bargaining power is the relative ability of two parties to negotiate an agreement. The party with more bargaining power has more leverage to make demands and get what they want out of the agreement.
There are many factors that can affect bargaining power, such as the size and financial resources of each party, their respective bargaining skills, and the level of urgency or need for the agreement. In some cases, one party may have all the bargaining power, while in others, both parties may have equal bargaining power.
The term ‘bargaining power’ is often used in business negotiations, but it can also apply to other types of negotiations, such as wage negotiations between employees and employers.
