What critical information does a BATNA provide during a negotiation?

A BATNA, or Best Alternative To a Negotiated Agreement, provides critical information about the negotiator's fallback position if the current negotiation fails to reach a satisfactory agreement. Specifically, it defines the value and course of action the negotiator will pursue if they walk away from the table. A strong BATNA gives a negotiator power and confidence because they know they have a viable option outside of the current negotiation. It sets a reservation point: the worst acceptable outcome in the current negotiation. Knowing your BATNA prevents you from accepting an agreement that is worse than what you could achieve without negotiating. Conversely, understanding the other party's BATNA helps you assess the feasibility of reaching an agreement and adjust your strategy accordingly. For example, if you are negotiating the sale of your car, your BATNA might be selling it to another interested buyer or keeping the car. Knowing the price you could get from the other buyer sets a lower limit on what you would accept in the current negotiation.