Answer to Question 1
Power in a negotiation can be analyzed in terms of four vantage points: potential power, perceived power, power
tactics, and realized power. A negotiator's potential power is the underlying capacity of the negotiator to obtain
benefits from an agreement. It is a function of the counterparty's dependence on you. How much someone depends
on you in a negotiation is based upon how much they value the resources you provide and value the alternative to
negotiating with you. Perceived power is a negotiator's assessment of each party's potential power, which may or
may not square with reality. Whereas a negotiator's alternatives affect the distribution of outcomes, perceived
power, as well as actual alternatives, affect the integrativeness of outcomes. Power tactics comprise what's
commonly studied in negotiation behavior and refer to the behaviors designed to use or change the power
relationship. Realized power is the extent to which negotiators claim benefits from an interaction.
Answer to Question 2
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