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<TITLE>Best alternative to a negotiated agreement - Wikipedia</TITLE>

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<H1 id="firstHeading" class="firstHeading" lang="en">Best alternative to a negotiated agreement</H1>			<DIV id="bodyContent" class="mw-body-content">
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<P>In <A href="/wiki/Negotiation_theory" title="Negotiation theory">negotiation theory</A>, the <B>best alternative to a negotiated agreement</B> or <B>BATNA</B> is the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached. 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, <A href="/wiki/Time_value_of_money" title="Time value of money">time value of money</A> 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.</P>
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<H2>Contents</H2>
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<UL>
<LI class="toclevel-1 tocsection-1"><A href="#Overview"><SPAN class="tocnumber">1</SPAN> <SPAN class="toctext">Overview</SPAN></A></LI>
<LI class="toclevel-1 tocsection-2"><A href="#History"><SPAN class="tocnumber">2</SPAN> <SPAN class="toctext">History</SPAN></A></LI>
<LI class="toclevel-1 tocsection-3"><A href="#See_also"><SPAN class="tocnumber">3</SPAN> <SPAN class="toctext">See also</SPAN></A></LI>
<LI class="toclevel-1 tocsection-4"><A href="#References"><SPAN class="tocnumber">4</SPAN> <SPAN class="toctext">References</SPAN></A></LI>
<LI class="toclevel-1 tocsection-5"><A href="#External_links"><SPAN class="tocnumber">5</SPAN> <SPAN class="toctext">External links</SPAN></A></LI>
</UL>
</DIV>
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<H2><SPAN class="mw-headline" id="Overview">Overview</SPAN><SPAN class="mw-editsection"><SPAN class="mw-editsection-bracket">[</SPAN><A href="/w/index.php?title=Best_alternative_to_a_negotiated_agreement&action=edit&section=1" title="Edit section: Overview">edit</A><SPAN class="mw-editsection-bracket">]</SPAN></SPAN></H2>
<P>The BATNA is often seen by negotiators not as a safety net, but rather as a point of leverage in negotiations. Although a negotiator's alternative options should, in theory, be straightforward to evaluate, the effort to understand which alternative represents a party's BATNA is often not invested. Options need to be actual and actionable to be of value,<SUP id="cite_ref-1" class="reference"><A href="#cite_note-1">[1]</A></SUP><SUP class="noprint Inline-Template noprint Template-Fact" style="white-space:nowrap;">[<I><A href="/wiki/Wikipedia:Independent_sources" class="mw-redirect" title="Wikipedia:Independent sources"><SPAN title="This claim needs a reference to a independent, third-party source. (July 2013)">third-party source needed</SPAN></A></I>]</SUP> however without the investment of time, options will frequently be included that fail on one of these criteria.<SUP id="cite_ref-2" class="reference"><A href="#cite_note-2">[2]</A></SUP><SUP class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<I><A href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><SPAN title="This claim needs references to reliable sources. (October 2007)">citation needed</SPAN></A></I>]</SUP> Most managers overestimate their BATNA whilst simultaneously investing too little time into researching their real options.<SUP class="noprint Inline-Template noprint Template-Fact" style="white-space:nowrap;">[<I><A href="/wiki/Wikipedia:Independent_sources" class="mw-redirect" title="Wikipedia:Independent sources"><SPAN title="This claim needs a reference to a independent, third-party source. (February 2015)">third-party source needed</SPAN></A></I>]</SUP> This can result in poor or faulty decision making and negotiating result. Negotiators also need to be aware of the other negotiator's BATNA and to identify how it compares to what they are offering.<SUP id="cite_ref-3" class="reference"><A href="#cite_note-3">[3]</A></SUP><SUP class="noprint Inline-Template" style="white-space:nowrap;">[<I><A href="/wiki/Wikipedia:Citing_sources" title="Wikipedia:Citing sources"><SPAN title="This citation requires a reference to the specific page or range of pages in which the material appears. (July 2013)">page needed</SPAN></A></I>]</SUP></P>
<P>Some people may adopt aggressive, coercive, threatening and/or deceptive techniques, this is known as a hard negotiation style;<SUP id="cite_ref-Nolan-Haley_4-0" class="reference"><A href="#cite_note-Nolan-Haley-4">[4]</A></SUP> a theoretical example of this is <I>adversarial approach style negotiation</I>.<SUP id="cite_ref-Nolan-Haley_4-1" class="reference"><A href="#cite_note-Nolan-Haley-4">[4]</A></SUP> Others may employ a soft style, which is friendly, trusting, compromising, and conflict avoiding.<SUP id="cite_ref-Fisher_and_Ury_5-0" class="reference"><A href="#cite_note-Fisher_and_Ury-5">[5]</A></SUP> According to Fisher and Ury, when hard negotiators meet soft negotiators, the hard negotiators usually win their position, but at the cost of potentially damaging the long term relationship between the parties.</P>
<P>Attractive alternatives are needed to develop a strong BATNA. In the best-selling book <I>Getting to YES: Negotiating Agreement Without Giving In</I>, the authors give 3 suggestions of how to accomplish this:</P>
<OL>
<LI>Inventing a list of actions one might take if no agreement is reached</LI>
<LI>Converting some of the more promising ideas and transforming them into tangible and partial alternatives</LI>
<LI>Selecting the alternative that sounds best</LI>
</OL>
<P>In negotiations involving different cultures, all parties need to account for cultural cognitive behaviors and should not let judgments and biases affect the negotiation. The individual should be separate from the objective.<SUP id="cite_ref-Fisher_and_Ury_5-1" class="reference"><A href="#cite_note-Fisher_and_Ury-5">[5]</A></SUP><SUP class="noprint Inline-Template" style="white-space:nowrap;">[<I><A href="/wiki/Wikipedia:Citing_sources" title="Wikipedia:Citing sources"><SPAN title="This citation requires a reference to the specific page or range of pages in which the material appears. (July 2013)">page needed</SPAN></A></I>]</SUP></P>
<P>The purpose here, as Gulliver mentions, is for negotiation parties to be aware.<SUP id="cite_ref-Gulliver_6-0" class="reference"><A href="#cite_note-Gulliver-6">[6]</A></SUP></P>
<P>Preparation at all levels, including prejudice-free thoughts, emotion-free behavior, bias-free behavior are helpful according to Morris and Gelfand.<SUP id="cite_ref-7" class="reference"><A href="#cite_note-7">[7]</A></SUP></P>
<H2><SPAN class="mw-headline" id="History">History</SPAN><SPAN class="mw-editsection"><SPAN class="mw-editsection-bracket">[</SPAN><A href="/w/index.php?title=Best_alternative_to_a_negotiated_agreement&action=edit&section=2" title="Edit section: History">edit</A><SPAN class="mw-editsection-bracket">]</SPAN></SPAN></H2>
<P>BATNA was developed by negotiation researchers <A href="/wiki/Roger_Fisher_(academic)" title="Roger Fisher (academic)">Roger Fisher</A> and <A href="/wiki/William_Ury" title="William Ury">William Ury</A> of the Harvard Program on Negotiation (PON), in their series of books on <A href="/wiki/Principled_negotiation" class="mw-redirect" title="Principled negotiation">Principled negotiation</A> that started with <I><A href="/wiki/Getting_to_YES" class="mw-redirect" title="Getting to YES">Getting to YES</A></I>, unwittingly duplicating the <A href="/wiki/Game_theory" title="Game theory">game theory</A> concept of a disagreement point from <A href="/wiki/Bargaining_problem" title="Bargaining problem">bargaining problems</A> pioneered by <A href="/wiki/Nobel_Laureate" class="mw-redirect" title="Nobel Laureate">Nobel Laureate</A> <A href="/wiki/John_Forbes_Nash" class="mw-redirect" title="John Forbes Nash">John Forbes Nash</A> decades earlier.<SUP id="cite_ref-Fisher_and_Ury_5-2" class="reference"><A href="#cite_note-Fisher_and_Ury-5">[5]</A></SUP><SUP id="cite_ref-Myerson_8-0" class="reference"><A href="#cite_note-Myerson-8">[8]</A></SUP> A <A href="/wiki/Nash_Equilibrium" class="mw-redirect" title="Nash Equilibrium">Nash Equilibrium</A> is reached among a group of players when no player can benefit from changing strategies if every other player sticks to their current strategy.<SUP id="cite_ref-Hawkins_and_Steiner_9-0" class="reference"><A href="#cite_note-Hawkins_and_Steiner-9">[9]</A></SUP> For example, Amy and Phil are in Nash Equilibrium if Amy is making the best decision she can, taking into account Phil's decision, and Phil is making the best decision he can, taking into account Amy's decision. Likewise, a group of players are in Nash Equilibrium if each one is making the best decision that he or she can, taking into account the decisions of the others.</P>
<H2><SPAN class="mw-headline" id="See_also">See also</SPAN><SPAN class="mw-editsection"><SPAN class="mw-editsection-bracket">[</SPAN><A href="/w/index.php?title=Best_alternative_to_a_negotiated_agreement&action=edit&section=3" title="Edit section: See also">edit</A><SPAN class="mw-editsection-bracket">]</SPAN></SPAN></H2>
<UL>
<LI><A href="/wiki/Conflict_resolution_research" title="Conflict resolution research">Conflict resolution research</A></LI>
<LI><A href="/wiki/Opportunity_cost" title="Opportunity cost">Opportunity cost</A></LI>
</UL>
<H2><SPAN class="mw-headline" id="References">References</SPAN><SPAN class="mw-editsection"><SPAN class="mw-editsection-bracket">[</SPAN><A href="/w/index.php?title=Best_alternative_to_a_negotiated_agreement&action=edit&section=4" title="Edit section: References">edit</A><SPAN class="mw-editsection-bracket">]</SPAN></SPAN></H2>
<DIV class="reflist" style="list-style-type: decimal;">
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<OL class="references">
<LI id="cite_note-1"><SPAN class="mw-cite-backlink"><B><A href="#cite_ref-1"><SPAN class="cite-accessibility-label">Jump up </SPAN>^</A></B></SPAN> <SPAN class="reference-text"><A rel="nofollow" class="external text" href="http://www.negotiations.com/articles/best-alternative/">Best Alternative to a Negotiated Agreement | Negotiation Experts</A></SPAN></LI>
<LI id="cite_note-2"><SPAN class="mw-cite-backlink"><B><A href="#cite_ref-2"><SPAN class="cite-accessibility-label">Jump up </SPAN>^</A></B></SPAN> <SPAN class="reference-text"><A rel="nofollow" class="external text" href="https://www.yarooms.com/blog/batnaman-wins">Best Alternative to a Negotiated Agreement | YArooms</A></SPAN></LI>
<LI id="cite_note-3"><SPAN class="mw-cite-backlink"><B><A href="#cite_ref-3"><SPAN class="cite-accessibility-label">Jump up </SPAN>^</A></B></SPAN> <SPAN class="reference-text">Negotiation, Readings, Exercises and Cases, Roy J. Lewicki<SUP class="noprint Inline-Template" style="white-space:nowrap;">[<I><A href="/wiki/Wikipedia:Citing_sources#What_information_to_include" title="Wikipedia:Citing sources"><SPAN title="A more detailed citation is required. (July 2013)">full citation needed</SPAN></A></I>]</SUP></SPAN></LI>
<LI id="cite_note-Nolan-Haley-4"><SPAN class="mw-cite-backlink">^ <A href="#cite_ref-Nolan-Haley_4-0"><SPAN class="cite-accessibility-label">Jump up to: </SPAN><SUP><I><B>a</B></I></SUP></A> <A href="#cite_ref-Nolan-Haley_4-1"><SUP><I><B>b</B></I></SUP></A></SPAN> <SPAN class="reference-text"><CITE class="citation book">Nolan-Haley, Jaqueline M (2001). <A rel="nofollow" class="external text" href="https://www.amazon.com/dp/0314180141?keywords=Alternative+Dipute+Resolution"><I>Alternative Dispute Resolution in a Nutshell</I></A>. Thomson West. pp. 39–50. <A href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</A> <A href="/wiki/Special:BookSources/978-0-314-18014-8" title="Special:BookSources/978-0-314-18014-8">978-0-314-18014-8</A>.</CITE><SPAN title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Alternative+Dispute+Resolution+in+a+Nutshell&rft.pages=39-50&rft.pub=Thomson+West&rft.date=2001&rft.isbn=978-0-314-18014-8&rft.aulast=Nolan-Haley&rft.aufirst=Jaqueline+M&rft_id=https%3A%2F%2Fwww.amazon.com%2Fdp%2F0314180141%3Fkeywords%3DAlternative%2BDipute%2BResolution&rfr_id=info%3Asid%2Fen.wikipedia.org%3ABest+alternative+to+a+negotiated+agreement" class="Z3988"><SPAN style="display:none;"> </SPAN></SPAN></SPAN></LI>
<LI id="cite_note-Fisher_and_Ury-5"><SPAN class="mw-cite-backlink">^ <A href="#cite_ref-Fisher_and_Ury_5-0"><SPAN class="cite-accessibility-label">Jump up to: </SPAN><SUP><I><B>a</B></I></SUP></A> <A href="#cite_ref-Fisher_and_Ury_5-1"><SUP><I><B>b</B></I></SUP></A> <A href="#cite_ref-Fisher_and_Ury_5-2"><SUP><I><B>c</B></I></SUP></A></SPAN> <SPAN class="reference-text"><CITE class="citation book">Fisher and Ury, Roger and William (2011). <A rel="nofollow" class="external text" href="https://www.amazon.com/dp/0143118757?keywords=getting+to+yes+3rd+edition"><I>Getting to YES</I></A>. Penguin Books. pp. 1–170. <A href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</A> <A href="/wiki/Special:BookSources/978-0-14-311875-6" title="Special:BookSources/978-0-14-311875-6">978-0-14-311875-6</A>.</CITE><SPAN title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Getting+to+YES&rft.pages=1-170&rft.pub=Penguin+Books&rft.date=2011&rft.isbn=978-0-14-311875-6&rft.aulast=Fisher+and+Ury&rft.aufirst=Roger+and+William&rft_id=https%3A%2F%2Fwww.amazon.com%2Fdp%2F0143118757%3Fkeywords%3Dgetting%2Bto%2Byes%2B3rd%2Bedition&rfr_id=info%3Asid%2Fen.wikipedia.org%3ABest+alternative+to+a+negotiated+agreement" class="Z3988"><SPAN style="display:none;"> </SPAN></SPAN></SPAN></LI>
<LI id="cite_note-Gulliver-6"><SPAN class="mw-cite-backlink"><B><A href="#cite_ref-Gulliver_6-0"><SPAN class="cite-accessibility-label">Jump up </SPAN>^</A></B></SPAN> <SPAN class="reference-text"><CITE class="citation book">Gulliver, P.H (1979). <I>Disputes and Negotiation: A Cross Culture Perspective</I>. Academic Press. p. 287.</CITE><SPAN title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Disputes+and+Negotiation%3A+A+Cross+Culture+Perspective&rft.pages=287&rft.pub=Academic+Press&rft.date=1979&rft.aulast=Gulliver&rft.aufirst=P.H&rfr_id=info%3Asid%2Fen.wikipedia.org%3ABest+alternative+to+a+negotiated+agreement" class="Z3988"><SPAN style="display:none;"> </SPAN></SPAN></SPAN></LI>
<LI id="cite_note-7"><SPAN class="mw-cite-backlink"><B><A href="#cite_ref-7"><SPAN class="cite-accessibility-label">Jump up </SPAN>^</A></B></SPAN> <SPAN class="reference-text"><CITE class="citation encyclopaedia">Morris, Michael W.; Gelfand, Michele J. (2004). <A rel="nofollow" class="external text" href="https://books.google.com/books?id=xsOfOIzoZigC&pg=PA45">"Cultural Differences and Cognitive Dynamics: Expanding the Cognitive Perspective on Negotiation"</A>. In Gelfand, Michele J.; Brett, Jeanne M. <I>The Handbook of Negotiation and Culture</I>. Stanford University Press. pp. 45–70. <A href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</A> <A href="/wiki/Special:BookSources/978-0-8047-4586-4" title="Special:BookSources/978-0-8047-4586-4">978-0-8047-4586-4</A>.</CITE><SPAN title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=Cultural+Differences+and+Cognitive+Dynamics%3A+Expanding+the+Cognitive+Perspective+on+Negotiation&rft.btitle=The+Handbook+of+Negotiation+and+Culture&rft.pages=45-70&rft.pub=Stanford+University+Press&rft.date=2004&rft.isbn=978-0-8047-4586-4&rft.aulast=Morris&rft.aufirst=Michael+W.&rft.au=Gelfand%2C+Michele+J.&rft_id=https%3A%2F%2Fbooks.google.com%2Fbooks%3Fid%3DxsOfOIzoZigC%26pg%3DPA45&rfr_id=info%3Asid%2Fen.wikipedia.org%3ABest+alternative+to+a+negotiated+agreement" class="Z3988"><SPAN style="display:none;"> </SPAN></SPAN></SPAN></LI>
<LI id="cite_note-Myerson-8"><SPAN class="mw-cite-backlink"><B><A href="#cite_ref-Myerson_8-0"><SPAN class="cite-accessibility-label">Jump up </SPAN>^</A></B></SPAN> <SPAN class="reference-text"><CITE class="citation web">Myerson, Roger B. <A rel="nofollow" class="external text" href="http://home.uchicago.edu/rmyerson/research/jelnash.pdf">"Nash Equilibrium and the History of Economic Theory"</A> <SPAN style="font-size:85%;">(PDF)</SPAN>. <I>Nash Equilibrium and the History of Economic Theory</I>. Journal of Economic Literature<SPAN class="reference-accessdate">. Retrieved <SPAN class="nowrap">1 October</SPAN> 2012</SPAN>.</CITE><SPAN title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Nash+Equilibrium+and+the+History+of+Economic+Theory&rft.atitle=Nash+Equilibrium+and+the+History+of+Economic+Theory&rft.aulast=Myerson&rft.aufirst=Roger+B&rft_id=http%3A%2F%2Fhome.uchicago.edu%2Frmyerson%2Fresearch%2Fjelnash.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3ABest+alternative+to+a+negotiated+agreement" class="Z3988"><SPAN style="display:none;"> </SPAN></SPAN></SPAN></LI>
<LI id="cite_note-Hawkins_and_Steiner-9"><SPAN class="mw-cite-backlink"><B><A href="#cite_ref-Hawkins_and_Steiner_9-0"><SPAN class="cite-accessibility-label">Jump up </SPAN>^</A></B></SPAN> <SPAN class="reference-text"><CITE class="citation web">Hawkins and Steiner, Jeff and Neil. <A rel="nofollow" class="external text" href="https://web.archive.org/web/20130228140045/http://www.hnlr.org/print/wp-content/uploads/2008/09/257-264.pdf">"The Nash Equilibrium Meets Batna"</A> <SPAN style="font-size:85%;">(PDF)</SPAN>. <I>Gamed Therory Varied Uses in ADR</I>. Harvard University Press. Archived from <A rel="nofollow" class="external text" href="http://www.hnlr.org/print/wp-content/uploads/2008/09/257-264.pdf">the original</A> <SPAN style="font-size:85%;">(PDF)</SPAN> on February 28, 2013<SPAN class="reference-accessdate">. Retrieved <SPAN class="nowrap">1 October</SPAN> 2012</SPAN>.</CITE><SPAN title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Gamed+Therory+Varied+Uses+in+ADR&rft.atitle=The+Nash+Equilibrium+Meets+Batna&rft.aulast=Hawkins+and+Steiner&rft.aufirst=Jeff+and+Neil&rft_id=http%3A%2F%2Fwww.hnlr.org%2Fprint%2Fwp-content%2Fuploads%2F2008%2F09%2F257-264.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3ABest+alternative+to+a+negotiated+agreement" class="Z3988"><SPAN style="display:none;"> </SPAN></SPAN></SPAN></LI>
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<H2><SPAN class="mw-headline" id="External_links">External links</SPAN><SPAN class="mw-editsection"><SPAN class="mw-editsection-bracket">[</SPAN><A href="/w/index.php?title=Best_alternative_to_a_negotiated_agreement&action=edit&section=5" title="Edit section: External links">edit</A><SPAN class="mw-editsection-bracket">]</SPAN></SPAN></H2>
<UL>
<LI><A rel="nofollow" class="external text" href="http://www.negotiationtraining.com.au/articles/next-best-option/">BATNA Explained by David Venter</A></LI>
<LI>Alternative <A rel="nofollow" class="external text" href="http://www.negotiations.com/definition/batna/">definition of BATNA</A></LI>
</UL>

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