Bargaining power is more likely to be an important determinant of negotiated outcomes when the parties use a distributive bargaining approach or strategy.

Question

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Distributive bargaining is a competitive approach where each party tries to maximize their share of the resources or outcome. In this approach, bargaining power plays a critical role in achieving favorable outcomes. Parties with more bargaining power are in a better position to negotiate and obtain more of what they want, while those with less bargaining power are likely to receive fewer benefits. Therefore, bargaining power is a crucial determinant in distributive bargaining situations.

Bargaining Power Is More Likely to Be an Important Determinant