Negotiations: BATNA and your walkaway or reservation price

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In this post I'll explain a fundamental negotiating concept, BATNA.  Specifically, I'll define the term, explain how to calculate it, how it should inform your negotiating approach, and discuss the challenges of non-financial components of BATNA.

The examples that follow will be about buying/selling cars and job offers, but you can apply these concepts to any negotiations you encounter, including dealing with your customers, suppliers, employees, and employers.

Negotiations: Win-win (integrative) vs. zero-sum (distributive) outcomes

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In this post I'll go over two approaches to negotiations: the more familiar zero-sum (distributive) approach and the superior win-win (integrative) approach - and illustrate both with an example of negotiating for an orange.

I'll also provide 3 requirements for achieving win-win outcomes.