In: Operations Management
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 |
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B. |
Target=Reservation Price > BATNA |
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C. |
BATNA<Reservation Price<Target |
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D. |
BATNA<Target<Reservation Price |
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E. |
Reservation Price<Target<BATNA |
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