Best Alternative To A Negotiated Agreement - BATNA

AAA

DEFINITION of 'Best Alternative To A Negotiated Agreement - BATNA'

The course of action that will be taken by a party engaged in negotiations if the talks fail and no agreement can be reached. The term BATNA was coined by negotiation researchers Roger Fisher and William Ury in their 1981 bestseller "Getting to Yes: Negotiating Agreement Without Giving In." A party's BATNA refers to what they can fall back on if a negotiation proves unsuccessful.

INVESTOPEDIA EXPLAINS 'Best Alternative To A Negotiated Agreement - BATNA'

BATNAs may be developed for any situation that calls for negotiations, from negotiating a pay hike to resolving complex conflicts. While a BATNA may not always be easily identifiable, Fisher and Ury have outlined a simple three-step process for determining it: Develop a list of actions to take if no agreement is reached; convert the more promising ideas into practical options; and tentatively select the option that seems best.

RELATED TERMS
  1. Deal Breaker

    An issue that, if left unresolved, prompts one party to discontinue ...
  2. Pareto Efficiency

    An economic state where resources are allocated in the most efficient ...
  3. Counterbid

    A purchase offer made in counter to the offer of another potential ...
  4. Nash Equilibrium

    A concept of game theory where the optimal outcome of a game ...
  5. Game Theory

    A model of optimality taking into consideration not only benefits ...
  6. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
Related Articles
  1. 7 Tips For The Do-It-Yourself Debt Manager
    Credit & Loans

    7 Tips For The Do-It-Yourself Debt Manager

  2. Why is Game Theory useful in business?
    Options & Futures

    Why is Game Theory useful in business?

  3. Game Theory: Beyond The Basics
    Options & Futures

    Game Theory: Beyond The Basics

  4. The Basics Of Game Theory
    Fundamental Analysis

    The Basics Of Game Theory

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center