Expert Answers

An illustration of the letter 'A' in a speech bubbles

BATNA is an acronym which stands for "Best Alternative to Negotiated Agreement." When two or more parties engage in a negotiation, there are three general points that could be considered. The first point is the best case negotiated agreement. This would be a situation where Party A obtains everything it...

View
This Answer Now

Start your 48-hour free trial to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.

Start your 48-Hour Free Trial

BATNA is an acronym which stands for "Best Alternative to Negotiated Agreement." When two or more parties engage in a negotiation, there are three general points that could be considered. The first point is the best case negotiated agreement. This would be a situation where Party A obtains everything it wants without any cost. Outside of a truly unique situation, this likely to be impossible to attain. The second point is the worst case negotiated agreement. This would be a situation where Party A obtains nothing they want but has to cover substantial costs. This is also likely to be impossible to attain outside of a truly unique situation. The final point would be the BATNA. This is the situation where Party A decides to walk away from a negotiation with no agreement.

BATNA is an important concept because negotiators, especially less experienced negotiators, can push themselves to a point where they believe it is necessary to take a negotiated deal. By remembering the BATNA, negotiators can have a good baseline for negotiations as well as a hard point at which it is advisable to merely walk away with no deal.

Approved by eNotes Editorial Team