Explain your understand of BETNA model in negotiations ?

BETNA stands for BEst alternative To a Negotiated Agreement.

Basicly, BETNA is your walk-away point when you are having a negotiation with other party but actually you already received other offer from different party.

You'll decide to accept or reject the newest offer, based on the previous offer, which is an alternative.

Having good BETNA makes you stronger in negotiation. Wrong determination of your BETNA will be costly for you.

When parties have similar ideas about what BETNAs exists means that both parties have similar views of how a dispute will turn out if they do not agree. In this situation, it is often smarter for them to negotiate an agreement without continuing the disputing process, thus saving the transaction costs.

The process for determining your BETNA:

1. develop a list of actions you might conceivably take if no agreement is reached;
2. improve some of the more promising ideas and convert them into practical options; and
3. select, tentatively, the one option that seems best