MGTS2606 Lecture Notes - Lecture 6: Best Alternative To A Negotiated Agreement, Sunk Costs

• School: UQ
• Department: Management
• Course: MGTS2606
• Professor: Nasreen Sultana

Document Summary

Lecture 6: batna (best alternative to a negotiated agreement) A negotiator"s batna is the course of action he will pursue if the current negotiation results in an impasse. An evaluation of your best alternative to a deal is critical if you are to establish the threshold at which you will reject an offer. Effective negotiators determine their batnas before talks begin, if not you are liable to make a costly mistake. (rejecting a deal you should have accepted or accepting one you should have been wise to reject. To determine your batna in a given negotiation, this 4 steps must be followed: list your alternatives think about all the alternatives available to you if the current negotiation ends in an impasse. What are your no-deal options: evaluate your alternatives examine each option and calculate the value of pursuing each one, establish your batna choose a course of action that would have the highest expected value for you.