BATNA

BATNA stands for "Best Alternative to a Negotiated Agreement." It refers to the best option available to a party if negotiations fail and an agreement cannot be reached. Understanding your BATNA allows you to make informed decisions during negotiations, as it provides a fallback plan. If your current offer is worse than your BATNA, you may choose to walk away. Essentially, knowing your BATNA empowers you to negotiate more effectively by clarifying your limits and helping you recognize when to accept, reject, or push for better terms.