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Batna: - and It's Related Terms
Batna: - and It's Related Terms
• Bargaining zone
• Aspiration level
1) BATNA
• Most advantageous alternative course of action a party
can take
• Exact opposite - WATNA (worst alternative to a
negotiated agreement)
• Diverse situations - 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.
BATNA Tips
• Know your BATNA
Do not think of your BATNA in aggregate
terms
•The bargaining zone is the space between the buyer’s reservation price
(BR) and the seller’s reservation price (SR) – that is, the zone of possible
agreement.
• If B
R > SR, then a Positive Bargaining Zone exists. The zone of agreement is
from SR to BR (e.g., Rs.8K).
A Negative Bargaining Zone
Seller’s Reservation Price (SR)
(e.g., Rs.25K)
23,500
23,000
22,500 Buyer focused on
BATNA
22,000
Buyer focused on
21,500 aspiration level
21,000
20,500