For example, for a seller, this means the minimum amount they would be prepared to accept, while for a buyer it would mean the maximum that they would be prepared to pay. Or consider this BATNA example, below. Example of BATNA. ZOPA, or Zone of Possible Agreement, is the range or area of a negotiation that is satisfactory to both parties. Netscape’s BATNA Blunder. Person A offers his iPhone X for $600 to person B. Yet, they are certain that they are right. They have no idea what could happen if they went to court. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. By that we mean their best alternative to a negotiated agreement (BATNA) and their worst alternative to a negotiated agreement (WATNA). BATNA and ZOPA. The Netscape Navigator negotiation case provides a now-infamous example. A wants to sell his old iPhone X to person B who wants to buy iPhone X. Now that you know what a BATNA is, you should be aware of another term that is frequently used along with it. BATNA/WATNA analysis can also lose meaning in some contexts, such as cases where bankruptcy is a realistic possibility. For example, during the two-dollar bargaining game I didn’t clearly have a BATNA and this hindered my negotiation strategy. Avoiding a WATNA when calculating your BATNA To avoid the emotional cost of accepting an offer that gives us very little, we often react self-destructively. When considering the BATNA, MLATNA, and WATNAs, each party should consider what alternative paths exist if … Person B then browses through eBay and finds exactly same iPhone for $500. A common problem we see in disputes is a party not knowing what their BATNA and WATNA is. Considering a WATNA means that each party thinks about what their losing scenario looks like. As suggested earlier, BATNA/WATNA analysis can also be less influential where parties simply refuse to give it meaning because they can afford to do so and have other interests that are more important to them. In negotiation theory, the best alternative to a negotiated agreement or BATNA (no deal option) refers to the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached. This is true in both business and politics. While each party has their BATNA in a negotiation, it is not very likely that every negotiation has ZOPA. BATNA and WATNA. I just knew I had to get $1.60 but I had no idea what to do if I got a smaller amount, which was what eventually happened. This site’s case studies are rife with real-life examples of BATNA being the single biggest success factor or blind spot. In that case, the focus of the analysis shifts completely from theoretically possible legal outcomes to one party’s actual resources and the value that the party places on … However, there were no stakes. A WATNA is the worst possible outcome a party has in mind. It can be the same number that you can get without the negotiation, but it can also mean a different number. As the renewal deadline for Sam’s homeowner’s insurance policy approached, he decided to do a “market check” to compare prices. In the example above, the BATNA is the lower prices of the competitors; this is an alternative plan that will benefit the buyer, and it can help the supplier realize he needs to offer more reasonable terms. The exact opposite of this option is the WATNA (worst alternative to a negotiated agreement). So BATNA of person B is $500. The key is getting both sides to see that alternatives exist if … Unlike BATNA, the Reservation Value is always expressed as a number. 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