BATNA & Negotiation Preparation Flashcards

A professional negotiator is preparing for a complex multi-party deal. Which preparation step should be completed FIRST?

Answer: Identify all stakeholders and their respective interests and BATNAs

Understanding all parties' interests and alternatives is foundational before crafting strategy or making any offers.

When the other party appears to have a very strong BATNA, which negotiation approach is most advisable?

Answer: Focus on creating value through integrative tactics to expand the pie beyond BATNA comparisons

Integrative bargaining can create joint value that makes your offer more attractive than the other party's strong BATNA.

What is the primary risk of revealing your true BATNA to the other party early in a negotiation?

Answer: The other party can craft an offer just barely better than your BATNA, capturing most of the surplus

Disclosing your BATNA allows the other party to make a minimally acceptable offer, leaving you little negotiating surplus.

An experienced negotiator uses 'objective criteria' during preparation. What purpose does this serve in relation to BATNA?

Answer: Objective criteria strengthen your position by providing legitimate justification for your proposals independent of power

Grounding proposals in objective standards (market rates, precedent, expert opinion) adds legitimacy that complements your BATNA-based power.

In a real estate negotiation, a seller's property has been on the market for 180 days with no offers. How does this affect the seller's BATNA?

Answer: It weakens the seller's BATNA because carrying costs accumulate and alternatives diminish

Extended time on market signals weakening alternatives and increases financial pressure, reducing the seller's effective BATNA.

What distinguishes a 'target point' from a 'reservation point' in negotiation preparation?

Answer: The target point is your ideal outcome; the reservation point is your minimum acceptable outcome tied to your BATNA

The target point is your aspirational goal while the reservation point (derived from BATNA) is the least favorable outcome you will accept.

A negotiator is told 'take it or leave it.' How should BATNA preparation inform their response?

Answer: Compare the offer against your BATNA; accept if the offer exceeds it, reject if it does not

A take-it-or-leave-it offer should be evaluated against your BATNA — if the offer is better, accept; if not, exercise your alternative.