Tags: negotiating table, BATNA, Definition of Batna, Batna negotiation, Best alternative to a negotiated agreement, Bruce Patton, Dealmaking, Yes, Yes, Yes, Negotiation agreement, Guhan Subramanian, importance of Batna, negotiation, negotiated agreement, negotiated agreement, negotiation agreement without yielding, negotiation, negotiation, negotiation skill, negotiation strategies, negotiating table, negotiation theory, negotiator, negotiator, Roger Fisher, Ury, what is Batna negotiation g, William Ury Often it is even more difficult to determine the BATNA of the other party. However, this information is essential, as it is BATNA that determines the bargaining power of the other party. Sometimes conclusions can be drawn by determining one`s main interests, and the negotiation itself can be used to verify or falsify assumptions. For example, if it is assumed that a very early delivery date is essential for the negotiating partner, it is possible to deliberately propose the setting of a later delivery date. In case of categorical refusal of this late delivery date, the desired delivery date should be very important. [2] A negotiator who knows more about the alternatives available to the other party or parties will be better able to prepare for a negotiation. If, before a negotiation begins, a negotiator learns that the other party is overestimating their BATNA, they can use this information effectively to reduce the other party`s expectations for negotiations. In situations where both sides have a similar or superior BATNA and then have similar negotiating capabilities, the negotiations would appear rather fruitless, given that there would be very little incentive to reach an agreement. In this scenario, both sides would be better off looking elsewhere to continue their activities. BATNA can also influence the order in which negotiations are entered into with potential contractors. A sequential approach is favourable. This is where negotiations with disadvantaged partners are started and negotiations are then pursued with the preferred option.

In this way, there is the BATNA of a contract with the disadvantaged partner. [4] If Tom`s best alternative to the deal is to sell the car to a dealer that would offer him $US 6,000, both parties can agree since Tom`s reservation point would be $US 6,000. In the situation described above, the diagram would look like this: At the same time, determine your BATNA, you should also take into account the alternatives available for the other page. Sometimes they are overly optimistic about their options. The more you can learn about their options, the better willing you are to trade. They will be able to develop a more realistic view of reasonable outcomes and offers. Circumstances can change quickly. Unexpected changes can be anything, new information, a sudden increase in costs or new laws. A sudden change in conditions can have an immediate impact on the strength of both parties` BATNA during the negotiation process. For example, as sam`s owners` insurance extension deadline approached, he decided to do a “market check” to compare prices.

Sam`s existing insurer — let`s call acme — had increased rates by 7% and 10% per year for the past three years, and Sam wasn`t sure if he was getting the best deal. He then found an airline that offered a policy for 30% less than Acme`s extension rate. You can choose, under these circumstances, to allude to your own powerful BATNA.. . . .