Bargaining Power

Bargaining Power

The leverage available to a party in a negotiation that helps achieve the desired outcome. For example, in a negotiation between an employee and an employer, the employee has bargaining power because she has a skill the employer wants or needs and thus may have the ability to extract a higher salary. On the other hand, the employer has bargaining power because he has money to pay the employee, which the employee wants. See also: Collective Bargaining.
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