Attempts to exercise power can backfire. As a negotiator, you must balance these three risks against the potential benefits of developing and exercising power:

1. At the same time you’re trying to exploit the bargaining power you think you have, your counterpart might view herself as the more powerful party.

• What happens when each side believes the other is on the verge of surrender? Merger attempts fail, labor strikes drag on, and lawsuits go to trial.

2. Resentment can cause the less powerful party to react emotionally to your coercive demands, refusing to make concessions even when it would be in his best interest (and yours) to do so.

3. When a negotiator who yields to greater strength feels she has been ill-treated, a seemingly successful exercise of power can damage relationships and reputations.

• The employer who convinces a candidate with a poor alternative to accept a relatively low salary might find that short-term savings come with the baggage of a disaffected worker and future recruiting difficulties.

Related Article: When You Have All the Power ^[2]