ABSTRACT
This chapter provides an overview and a discussion on elements, negotiation application, and limitations of best alternative to a negotiated agreement (BATNA). The BATNA is akin to the negotiator's fall-back position. However, whereas the term fall-back infers that the agreement reached may be sub-optimal, the BATNA is viewed as an alternative to reaching a mutually acceptable settlement. The basic premise is that a negotiator should not accept a worse resolution than their BATNA. Being BATNA-less means that are more likely to accept a deal rather than negotiate it. Therefore, determining a strong yet flexible BATNA is the key to a successful outcome. The BATNA should not be confused with the walk-away point, which suggests that there is no alternative option. Developed in the early 1980s, the BATNA theory appears to split academics. Many argue that it is more suited to industrial relations negotiations, while others promote it as a negotiation fundamental.
