BATNA: Definition and Practical Examples

BATNA is an acronym for “Best alternative to a negotiated agreement”.

Think of your BATNA (Best Alternative to Negotiated Agreement) as your plan B. It is the most advantageous alternative that a negotiating party can take if negotiations fail and an agreement cannot be made.

Here is a process developed by Harvard Law School to develop the best alternative to a negotiated agreement:

• List all alternatives to the current negotiation – what could you do if negotiations fall through?
• Evaluate the value of each alternative – how much is each alternative worth to me?
• Select the alternative that would provide the highest value to you (this is your best alternative to a negotiated agreement).
• After determining your BATNA, calculate the lowest-valued deal that you’re willing to accept.

Academic Question on BATNA

Q. What is BATNA What things you need to consider to determine your BATNA