NEGOTIATION THEORY
In negotiation theory, the best alternative to a negotiated agreement or BATNA (no deal option) refers to the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached. The exact opposite of this option is the WATNA (worst alternative to a negotiated agreement). The BATNA could include diverse situations, such as suspension of negotiations, transition to another negotiating partner, appeal to the court’s ruling, the execution of strikes, and the formation of other forms of alliances.[1] BATNA is the key focus and the driving force behind a successful negotiator. A party should generally not accept a worse resolution than its BATNA. Care should be taken, however, to ensure that deals are accurately valued, taking into account all considerations, such as relationship value, time value of money and the likelihood that the other party will live up to their side of the bargain. These other considerations are often difficult to value, since they are frequently based on uncertain or qualitative considerations, rather than easily measurable and quantifiable factors.
Oftentimes, it is even more difficult to determine the BATNA of the other party. However, the information is crucial as the BATNA determines the other side’s negotiation power. Sometimes, conclusions can be drawn by determining his/her main interests and the negotiation itself can be used to verify or falsify the assumptions. If, for example, it is assumed that a very early delivery date is of key importance to the negotiating partner, deliberately setting a later delivery date can be proposed. If this late delivery date is decidedly rejected, the desired delivery date is likely to be of great importance.[2]
