What Is The Concept Of Best Alternative To A Negotiated Agreement

BATNA is often not seen by negotiators as a safety net, but as a lever in negotiations. Although a negotiator`s alternative options should theoretically be easy to assess, the attempt to understand what alternative BATNA represents for some is often not invested. Options must be real and achievable to be of value,[5][source of third party required] however, without the investment of time, often contain options that fail any of these criteria. [6] [Quote required] Most managers overestimate their BATNA while investing too little time in the search for their real options. [Third-party source required] This can lead to bad or wrong decisions and negotiations. Negotiators must also be aware of the other negotiator`s BATNA and determine how they compare to what they offer. [7] [Page required] BATNA was developed by negotiators Roger Fisher and William Ury of the Harvard Program on Negotiation (PON) in their series of books on policy negotiations that began with Getting to YES and which unknowingly duplicated the concept of game theory from a point of disagreement on the negotiating problems developed by Nobel laureate John Forbes Nash decades earlier. [9] [12] A Nash balance is achieved among a group of players if no player can benefit from a change in strategy, if each other player maintains his current strategy. [13] For example, Amy and Phil are in Nash Equilibrium, so Amy makes the best decision possible, taking into account Phil`s decision, and Phil makes the best decision he can make taking into account Amy`s decision. Similarly, a group of players in Nash Equilibrium, if each makes the best decision he or she can make, taking into account the decisions of others. Improve your BATNA.

Look for alternatives to the current BATNA to see if it can be improved. If there is no BATNA, create one. In this case, there is a potential agreement area — $6,000 to $7,500. Somewhere in this area, the two sides should be able to agree. As noted in the example above, it is important to have an optimal alternative to a negotiated agreement before negotiations begin.

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