What Is BATNA? Explain with an Example

Question

Examlex · Accepted Answer

The Answer is Decisions should not be evaluated in isolation, but must be assessed in the context of what other reasonable alternatives may be at hand. In particular, negotiators must be fully aware of their BATNA or best alternative to a negotiated agreement. Decisions should not be evaluated in isolation, but must be assessed in the context of what other reasonable alternatives may be at hand. For example, it is not very helpful to say that a certain decision is bad and that you disagreed with it without proposing what you would have recommended instead. In this way, you can make comparisons between your decision and the chosen one and the strengths and weaknesses of both choices. It is better to quit a lengthy negotiation than to accept a deal at a loss. Do not be afraid to walk away from any negotiation that provides terms that are worse than your best alternative to the negotiated agreement. Remember what the avoidance of escalation of commitment implies here: it is better to quit a lengthy negotiation than to accept a bad deal just to show something for the effort.

What Is BATNA? Explain with an Example

Definitions: