Power Dynamics and Negotiation Behaviors: How Perception of Power Balance Affects Negotiation Strategy

Abstract

This study examines how power impacts parties’ negotiation behaviors. We propose a new conceptualization of power. Since power is largely a matter of perception, and symmetry lies in the eye of the beholder, the parties’ perceptions of power balance, be it symmetry or asymmetry, is highlighted. We relate perception of power balance to negotiation strategies, hypothesizing that in the case of perceived power symmetry, parties’ negotiation behaviors tend to be more competitive and combative, whereas in the case of perceived power asymmetry, the negotiation behaviors are likely to be more cooperative. To test this proposition, a comparative case study is presented.