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. 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.

Leverage has been described as "negotiation's prime mover," indicating its important role in bargaining and negotiation situations. 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.