Negotiating Parties
The people at negotiations that make the moment to moment decisions and conduct the conversation
Parties at the table
What does BATNA stand for, and what does it mean?
Best Alternative to a Negotiated Agreement
It is our best alternative when a negotiation fails and both parties can't come up with an agreement.
This is the belief in your own ability to handle difficult conversations and advocate for your interests.
Self-confidence
Before a negotiation begins, this tactic involves gathering information and creating alternatives, so you’re not stuck with only one option.
Improving your BATNA
If someone in a negotiation is worried about a group in an abstract sense then they are worried about?
background nonparticipants
You are buying a used video console, and the highest price you are willing to pay is $85. However, the seller of this console wants to sell it at $120. What is our BATNA?
Look for another seller that sells the exact video console.
Negotiators build confidence by preparing these in advance—facts, data, and clear reasoning to support their position.
Arguments or evidence
Byron tells Tarik he has a $9,000 offer from Jim and will sell to Jim unless Tarik exceeds it. This is an example of doing what with a BATNA?
Disclosing your BATNA
What is the key difference between background participants and background nonparticipants?
Background nonparticipants can not directly affect the negotiations
What are the two reasons why alternatives and BATNAs affect a negotiation?
1) Affects how the party with the alternatives sees the negotiations
2) It affects how the other party sees the negotiation
Confidence can be strengthened by practicing this type of communication style, which is direct yet respectful.
Assertive communication
When negotiators try to assess the strength of the other party’s alternatives by asking, “What will you do if we can’t reach an agreement?” they are using this tactic.
Exposing another's BATNA
What is a possible issue when taking into account background nonparticipants in negotiations?
what you think they are concerned about and what they are actually concerned about could be different
Name two of the few important characteristics of BATNAs
Possible choices:
Each party at the table has a Batna.
BATNA is singular; there is only one "best".
A BATNA can be bad - you can always have poor alternatives.
It exists outside the current negotiation; it is not the best offer or a compromise.
A BATNA is often the status quo.
Confidence in negotiation is tied not just to knowing your own BATNA but also to improving it. What is one specific action that strengthens your confidence through your alternatives?
Improve your BATNA by identifying additional options, creating more outside opportunities, or enhancing your fallback position.
This dramatic move signals that your alternative is better than the current deal, but only works if you truly follow through.
Walking away
When negotiating on the price of a car at a dealership, who would be the background participant for the employee trying to sell the car
The employee's manager/boss
Why are BATNAs often mistaken for compromises?
People often mistake a BATNA for a middle ground, or settling on a value in the middle. This is a compromise. However, a BATNA is the best possible outcome if a negotiation fails; they are the alternative to a negotiated agreement.
Overconfidence can backfire during negotiation. What is one major risk of having unjustified confidence?
It can lead to under-preparation, misreading the other party’s options, making unreasonable demands, or ignoring warning signs that the counterpart has stronger alternatives.
In the NHL lockout, players pushed for a $49 million cap, assuming owners would concede rather than lose a season. Instead, the season was canceled and the final cap dropped to $39 million. This outcome best demonstrates the dual risk of which two negotiation errors?
Overestimating your own BATNA and underestimating the other side's BATNA.