BATNA
BATNA / Best alternative to a negotiated agreement
A BATNA is the best alternative to a negotiated agreement: the course of action a party would take if the current negotiation ended without a deal.
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Simply put
What it means in ordinary work
It is your fallback. A credible alternative gives you a clearer basis for deciding whether a proposed deal is better than walking away.
Why it matters
Negotiation leverage depends on the quality of alternatives. Understanding both your BATNA and the likely alternatives of the other side improves preparation and reduces bluffing.
A hypothetical in practice
A hypothetical buyer has a qualified second supplier and a workable extension option with the incumbent. That alternative helps the team reject a price increase that would be worse than switching, after accounting for transition cost.
Common pitfalls
A BATNA is not a threat or a wish. It must be real, available and realistically executable.
Assuming the other side has no alternative can lead to overconfidence and a failed negotiation.
Regional lens
How this lands where you work
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As-of date for date-sensitive regional content: 5 November 2026. Read the review policy.