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BATNA, or Best Alternative to a Negotiated Agreement, serves as a crucial benchmark in negotiations. Pros include empowering negotiators by providing a clear alternative, enhancing confidence, and enabling better decision-making. However, cons may involve the potential for overconfidence if one’s BATNA is misjudged, or the risk of settling for a suboptimal agreement if the BATNA is perceived as too favorable. Balancing awareness of one's BATNA with realistic expectations is essential for effective negotiation.
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