In this case, there is a potential agreement area — $6,000 to $7,500. Somewhere in this area, the two sides should be able to agree. Having good options at your disposal before starting negotiations is a proven method. You will feel able and confident either to reach a satisfactory agreement for both parties or to go to your best alternative. Use to quote this article: Spangler, Brad. “Better Alternative to a Negotiated Agreement (BATNA).” Beyond the input. Eds. Guy Burgess and Heidi Burgess. Conflict Information Consortium, University of Colorado, Boulder. Published: June 2003 . The best alternative to a negotiated agreement (BATNA) is the approach that a party to the negotiations will take if the talks fail and no agreement can be reached. Negotiators Roger Fisher and William Ury used the term BATNA in their 1981 bestseller “Getting to Yes: Negotiating Agreement Without Giving In.” A party`s BATNA refers to what a party can rely on if a negotiation proves unsuccessful. Guy Burgess and Heidi Burgess have slightly adapted the BATNA concept to emphasize what they call “EATNAs” – popular alternatives to a negotiated agreement” instead of “better alternatives.” Although the parties to the dispute do not have good options outside of negotiations, they often think they do.
(For example, both sides believe that they can impose themselves in court or in the military struggle, even if some of them are significantly weaker or if the relative forces are so balanced that the outcome is very uncertain.) But the decision whether or not to accept an agreement depends on perception. If a contestant thinks he or she has a better option, she will follow this option very often, even if she is not as good as she thinks. The performance of your BATNA gives you the leverage to ask for more. If you don`t get what you`re looking for, then you can turn to your best alternative. A strong BATNA is like a hot and fuzzy insurance. A strong alternative offers you two possibilities. Either they make an agreement on more advantageous terms, or you just say “no business” because you have a good alternative plan. Your best alternative to a negotiated deal is a well thought out plan, which you are ready and able to execute if no deal can be reached. In the theory of negotiations, the best alternative to a negotiated agreement or BATNA (no deal option) refers to the most advantageous alternative that a party can take if negotiations fail and no agreement can be reached. WATNA (worst alternative to a negotiated agreement) is quite the opposite of this option.
BATNA could include several situations, such as the suspension of negotiations, the transition to another negotiator, the appeal of the court`s judgment, the organization of strikes and the formation of other forms of alliances.  BATNA is the main concern and driving force of a successful negotiator. A party should generally not accept a resolution worse than its BATNA. However, it is important to ensure that transactions are accurately assessed, taking into account all considerations such as relational value, the present value of the money and the likelihood that the other party will live up to the bargain. These other considerations are often difficult to assess because they are often based on uncertain or qualitative considerations and are not easily measurable and quantifiable. Colin needs a car and negotiates with Tom to buy his car. Tom offers to sell his car to Colin for $10, 000. Colin searches Craigslist and finds a similar car to which he attributes a value of 7,500 dollars.