Empiriceme · Precept · Normative Principle

BATNA

Also called Best alternative to a negotiated agreement

Bargaining power comes from the quality of your best alternative to agreement, not from your need or your rhetoric.

Fisher and Ury's central point in Getting to Yes, 1981: improve your alternative before you improve your arguments. A party with no alternative is negotiating terms, not price.

In practice

  • A supplier holds firm not because their pitch is good but because they have three other buyers; the negotiation was decided before either side spoke.
  • A tenant who has found somewhere else to live negotiates a rent increase very differently from one who has not looked.
Subject
Games & Strategic Interaction
Essay
The recurring shapes of conflict and cooperation

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