Question

Your friend, Danny, asked you to sell his car because he knows you're good at negotiating, and he needs to sell it in the next 3 weeks to pay some bills. He tells you he wants $20,000 for the car, but would settle for $16,000. You look at the blue book prices and see the car is worth $18,500. He knows another friend that would buy the car right now, in cash, for $15,000, but he would only do this if the car didn't sell to anyone else after 3 weeks.
Danny's BATNA is:

Answer 1

Answer:

Danny's BATNA is $15,000

Explanation:

BATNA means best alternative to a negotiated agreement.

Is the option available to a decision maker outside any agreement already reached in a business transaction.

In the scenario,the best alternative to negotiated agreement of Danny selling the car for at least $16,000 is to accept $15,000 offered by another friend.

Even though the blue book prices showed that the car was worth $18,500,no buyer is coming forth with such negotiated price,hence the BATNA for Danny is $15,000