BATNA & Negotiation Preparation Flashcards

Which of the following best describes 'WATNA' and its role in negotiation preparation?

Answer: WATNA (Worst Alternative to a Negotiated Agreement) helps negotiators understand the downside risk of walking away

WATNA forces negotiators to consider the worst-case outcome if they reject a deal, providing a complete picture of risk on both sides.

In preparing for a labor negotiation, a union calculates that a strike will cost members $2,000/week in lost wages. How does this figure into BATNA analysis?

Answer: It defines the cost of the union's BATNA (strike), which sets the union's minimum acceptable wage increase

The cost of a strike is the cost of exercising the union's BATNA, which directly establishes how much the union must gain from a deal to make it worthwhile.

What is 'interest-based preparation' and how does it differ from position-based preparation?

Answer: Interest-based preparation focuses on underlying needs and motivations, while position-based focuses on stated demands

Interest-based preparation uncovers why parties want what they want, enabling creative trades that position-based preparation often misses.

A negotiator discovers that the opposing party's BATNA is litigation, which would take three years and cost $500,000. How should this shape the negotiation strategy?

Answer: Structure proposals to provide value above the other party's litigation BATNA while staying below your own reservation point

Knowing the cost and timeline of their BATNA lets you craft offers that are more attractive than their alternative while preserving your own surplus.

Which preparation activity best helps a negotiator anticipate and counter the other party's negotiation tactics?

Answer: Conducting thorough research into the other party's history, past deals, and known preferences

Research into the counterpart's patterns and history allows you to anticipate their approach and prepare tailored responses.

What is the significance of 'logrolling' in BATNA preparation?

Answer: Logrolling involves trading concessions on issues of differing priority to create mutual gain beyond what BATNAs alone could achieve

Logrolling exploits differences in priorities to create value that makes a negotiated deal superior to both parties' BATNAs.

A CPN candidate is asked to evaluate a deal offer during an exam scenario. The offer is above their reservation point but below their target point. What is the correct action?

Answer: Continue negotiating toward the target point while remaining prepared to accept anything above the reservation point

An offer above your reservation point is acceptable but not optimal — skilled negotiators continue working toward their target while keeping the deal alive.