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Negotiators don’t necessarily derive their power from the relative size of their organisations. In fact, many negotiators fall into the trap of being scared by a seemingly “bigger” opponent on the other side and end up striking deals that belie their significance to the other side. As I have written before, these deals can be commercially ruinous. In fact, they derive their power from the incentives and sanctions that they have at their disposal. The problem that negotiators face when deploying their power, exerting their leverage as I once heard it described, is that some incentives seem relatively indivisible. They have one enormous “chunk” of a concession and then it’s over to threats and counter-threats – never a place where nice people like to be!

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