Coercion is the practice of forcing another party to behave in an involuntary manner, by using threats of negative consequences, economic pressure, or an imbalance of bargaining power. In negotiation, coercion may be used as a form of leverage to induce the other party to behave in a certain way. The Commonwealth of Australia Competition and Consumer Act 2010, (formerly known as the Trade Practices Act 1974) includes provisions to limit the use of economic duress and unconscionable conduct, so care should be taken when using threats in negotiation. This is especially true when there is an imbalance in bargaining power, for example, where the buyer is large and the supplier is small, or when the buyer is a large share of the supplier’s total sales, so that the supplier has little alternative but to comply. See also Negotiation.
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