In economics, bargaining power refers to the ability to influence the setting of prices or wages, usually arising from some sort of monopoly or monopsony position -- or a non-equilibrium situation in the market. The economic actor with more bargaining power has more economic freedom than those with similar assets. U.S. Economic Calendar Economics at the Open Directory Project Economics textbooks on Wikibooks The Economists Economics A-Z Institutions and organizations Bureau of Labor Statistics - from the American Labor Department Center for Economic and Policy Research (USA) National Bureau of Economic Research (USA) - Economics material from the organization... In economics, a monopoly (from the Greek monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a kind of product or service. ... In economics, a monopsony is a market form with only one buyer, called monopsonist, facing many sellers. ... For the 2002 science fiction movie see Equilibrium (2002 movie) Equilibrium or balance is any of a number of related phenomena in the natural and social sciences. ... A market is a mechanism which allows people to trade, normally governed by the theory of supply and demand, so allocating resources through a price mechanism and bid and ask matching so that those willing to pay a price for something meet those willing to sell for it. ... This article does not cite its references or sources. ...
I demonstrate that the bargainingpower hypothesis only applies unambiguously to negotiations in which there is a bilateral monopoly between buyer and seller, no incremental costs to making a hostile bid, symmetric information, and loyal sell-side agents.
These conditions suggest that the bargainingpower hypothesis is only true in a subset of all deals, contrary to the claim of some defense proponents that the hypothesis applies to all negotiated acquisitions.
It is interesting to note that while the bargainingpower hypothesis lies squarely at the intersection of law and businessnamely, legal rules on takeover defenses influencing the business issue of priceto my knowledge the businesspeople who actually negotiate price have been silent on this question.
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