CAOT 31 Lecture Notes - Lecture 19: Best Alternative To A Negotiated Agreement, Mathematical Model, Advantageous
28 Oct 2020
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Attach utility measures of outcomes for each player to every possible combination of player moves. Want to predict whether or not players will reach an agreement and if so what the specific outcome will be. Advantage: given absolute rationality, gives the most precise prescriptive advice available to negotiators. Limitations: rationality isn"t given + hard to provide all possible options. Want to give the best advice to focal negotiators involved in real conflict with real people (consider that people aren"t always rational) Prescriptive from the focal negotiators point of view, descriptive from the competing party"s point of view. Analytical structure based on the assessment of three key sets of info (building blocks for thinking analytically about a negotiation) Each party"s best alternative to a negotiated agreement (batna) Determines negotiators reservation point accept what"s above (rather than impasse), decline what"s below. When we fail to consider batna, emotions hold sway and we make wrong decisions.
