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Sixty undergraduates negotiated an exchange of resources in dyads. They had either high or low power relative to the other and were within a competitive or cooperative context. Results support the hypothesis that these contexts affect unequal power persons' interaction and relationship. Compared to those in the cooperative context, high and lower power participants in the competitive context suspected each other, refused to exchange resources, developed negative attitudes toward each other, and associated power with control. In addition, low power participants in the competitive context indicated considerable insecurity about the interaction. These results highlight that previous literature has tended, often implicitly, to consider power and unequal power relationships within a competitive context. The dynamics proposed by this literature that inequality of power undermines negotiations and that power refers to the control of another were found to be much stronger within a competitive context than a cooperative one. Whereas the emphasis of the literature has been on power equalization, findings suggest that placing power differences in a cooperative con text can contribute to effective working relationships.