BATNAs are essential to negotiation because you cannot make wise decisions about whether or not to accept a negotiated agreement, unless you know what your alternatives are. If you are offered a used car for 7500 $US, but there is a better one at another dealership for $6,500 – the car is your BATNA. Another term for the same thing is your “walking point.” If the seller does not drop their price below $6500, you will walk AWAY and buy the other car. At the same time, you determine your BATNA, you should also consider alternatives on the other side. Sometimes they may be too optimistic about their options. The more you know about your options, the better you`ll be willing to negotiate. They will be able to develop a more realistic view of results and reasonable offers. In the theory of negotiations, the best alternative to a negotiated agreement or BATNA (no deal option) refers to the most advantageous alternative that a party can take if negotiations fail and no agreement can be reached. WATNA (worst alternative to a negotiated agreement) is quite the opposite of this option. BATNA could include several situations, such as the suspension of negotiations, the transition to another negotiator, the appeal of the court`s judgment, the organization of strikes and the formation of other forms of alliances. [1] BATNA is the main concern and driving force of a successful negotiator. A party should generally not accept a resolution worse than its BATNA. However, it is important to ensure that transactions are accurately assessed, taking into account all considerations such as relational value, the present value of the money and the likelihood that the other party will live up to the bargain.
These other considerations are often difficult to assess because they are often based on uncertain or qualitative considerations and are not easily measurable and quantifiable. “Don`t put all the eggs in one basket” is an old and proven proverb. For a negotiator, this old intelligent saying shows that at the end of the day, you can have a lazy market if you negotiate with another negotiating team. In fact, you can end up with no deal at all. They must have a strong alternative waiting in the wings to have the power to say “no.” To master BATNA, here is our best article on BATNA. BATNA is often used in negotiation tacticsNegotiation Negotiation is a dialogue between two or more people in order to reach consensus on a subject or topic on which there is conflict.