An impasse is almost invariably mutually harmful, either as a result of direct action which may be taken such as a strike in employment negotiation or sanctions/military action in international relations, or simply due to the resulting delay in negotiating a mutually beneficial agreement.
Impasse can provide a credible signal that a party's position is genuine and not merely an ambit claim.
Most disputes arise in situations where facts are able to be interpreted in multiple ways, and if parties interpret the facts to their own benefit they may be unable to accept the opposing party's claim as reasonable.
As bargaining impasse is mutually harmful, it may be beneficial for the parties to accept binding arbitration or mediation to settle their dispute, or the state may impose such a solution.
Indeed, compulsory arbitration following impasse is a common feature of industrial relations law in the United States[1] and elsewhere.