What course of action can be taken by a party if the current negotiations fail and an agreement cannot be reached?

A.
PON

B.
ZOPA

C.
BATNA

D.
Bias

Explanation:

In negotiation theory, the best alternative to a negotiated agreement or BATNA is the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. BATNA is the key focus and the driving force behind a successful negotiator. BATNA should not be confused with the reservation point or walk away point. A party should generally not accept a worse resolution than its BATNA. Care should be taken, however, to ensure that deals are accurately valued, taking into account all considerations, such as relationship value, time value of money and the likelihood that the other party will live up to their side of the bargain. These other considerations are often difficult to value, since they are frequently based on uncertain or qualitative considerations, rather than easily measurable and quantifiable ors.

Answer option B is incorrect. The zone of possible agreement (ZOPA), in sales and negotiations, describes the intellectual zone between two parties where an agreement can be met which both parties can agree to. Within this zone, an agreement is possible. Outside of the zone, no amount of negotiation will yield an agreement.

Answer option A is incorrect. The Program on Negotiation (PON) is a research center for the study and teaching of negotiation and conflict resolution. It was established as a consortium between Harvard, MIT, and Tufts University almost 25 years ago and is located at Harvard Law School. PON sponsors events, visiting scholars and researchers, graduate research fellows and conferences. It also offers negotiation and conflict resolution educational opportunities for students and professionals, and publishes the monthly Negotiation newsletter, quarterly
Negotiation Journal, and the annual Harvard Negotiation Law Review.

Answer option D is incorrect. Bias is a term used to describe a tendency or preference towards a particular perspective, ideology or result, when the tendency interferes with the ability to be impartial, unprejudiced, or objective. In other words, bias is generally seen as a ‘one-sided’ perspective. The term biased refers to a person or group who is judged to exhibit bias. It is used to describe an attitude, judgment, or behavior that is influenced by a prejudice. Bias can be unconscious or conscious in awareness. Having a bias is part of a normal development. Labeling someone as biased in some regard implies they need a greater or more flexible perspective in that area, or that they need to consider more deeply the context.