Question

In: Operations Management

You are the SELLER in a negotiation. Which of the following patterns correctly describes the relationship...

You are the SELLER in a negotiation. Which of the following patterns correctly describes the relationship between the following values:

A.

Target<BATNA<Reservation Price

B.

Target=Reservation Price > BATNA

C.

BATNA<Reservation Price<Target

D.

BATNA<Target<Reservation Price

E.

Reservation Price<Target<BATNA

Solutions

Expert Solution

Ans C

For the supplier, reservation price is bottom line price for a seller below which he or she will not agree for a deal. The reservation price is always higher than BATNA which is Best alternative to a negotiated agreement. BATNA means to walk away from the deal. The target price is higher than the reservation price as it is the value which is intended by the seller


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