Bargaining power refers to the ability of an individual or group to influence the terms of a negotiation. It can determine how much leverage one party has over another, affecting outcomes such as price, quality, and conditions. Factors that contribute to bargaining power include the availability of alternatives, the importance of the relationship, and the level of information each party possesses. In economic terms, bargaining power is often seen in labor negotiations, where unions may have more power if they represent a large number of workers. Similarly, in business transactions, a company with a strong market position may negotiate better deals with suppliers due to its influence and demand.