Leverage (negotiation)

In negotiation, leverage is a measure of which side, at any given moment, has a greater ability to influence the other side.

Types of leverage include positive leverage, negative leverage, and normative leverage.

Normative Leverage

Normative leverage is the application of general norms or the other party's standards and norms to advance one's own arguments for one's own good. For example, you have normative leverage when your negotiating opponent says that he only pays Blue Book value for cars and you show him that the Blue Book value is the amount you're charging.

Positive Leverage

Positive leverage is a negotiator's ability to provide things that his opponent wants. For example, you have positive leverage when your negotiating opponent says, "I want to buy your car".

Negative Leverage

Negative leverage is a negotiator's ability to make his opponent suffer. For example, you have negative leverage if you can threaten your negotiating opponent: "If you don't fulfill your commitment to me, I will ruin your reputation."

Negative leverage is an option of last resort for most negotiators, it is the "nuclear option".

External links

* [http://library.findlaw.com/2001/Jan/1/130785.html Improving Negotiation Skills: Rules for Master Negotiators] – Techniques for applying leverage in a negotiation
* [http://www.taylorwbuley.com/2006/12/03/ari-gold-super-agent/ Ari Gold: Super Agent] – Examples of leverage in the television series EntourageNO ADVERTISING!