The Book of Real-World Negotiations

Glossary

In order to think through the lessons from these cases most effectively, you will need to know the definitions of some core negotiation concepts (listed in alphabetical order below). Many of these may be familiar to you; others may be new.

Agent

A person or entity who acts for, or in place of, another individual or entity as their representative in a negotiation with another party. An agent can have either full or limited authority to act on the behalf of the party they represent.

Alternatives and BATNA (Best Alternative to a Negotiated Agreement)

Alternatives are all of the actions a negotiator might take if they cannot reach an agreement with the other parties to a negotiation. A negotiator might have a number of alternatives in a given negotiation. When a negotiator does have multiple alternatives, it is important to determine which of those is the best. That best alternative is known as a Best Alternative to a Negotiated Agreement (i.e. BATNA or walkaway alternative). BATNA helps a negotiator to compare different pathways in front of them and what their best course of action is in a given situation. A key element of BATNAs is that they are in no way reliant on the other negotiator.

Anchoring

Anchoring is an effort to frame a negotiation around a certain reference point so that the conversation will proceed from that place forward. Anchoring is closely connected to first offers (see below) because anchoring most often occurs at the outset of a negotiation.