In negotiation, which statements are true about BATNA, reservation price, and integrative vs distributive approaches?

• A. BATNA is the best alternative to a negotiated agreement.
• B. Reservation price is the minimum acceptable outcome.
• C. Integrative aims for mutual gain, distributive focuses on dividing value.
• D. All of the above.

Answer: (D)

In negotiation, these terms map the practical realities of deciding when to accept a deal and how to bargain.

BATNA, the best alternative to a negotiated agreement, is your walk-away option if talks fail. It sets a solid benchmark: if the deal on the table is worse than your BATNA, you should reject it and pursue that alternative. Knowing your BATNA helps you negotiate with confidence and avoids accepting a poor outcome just to close a deal.

Reservation price is the minimum acceptable outcome for you in the current negotiation. It’s the specific threshold that defines the point at which you’re willing to agree. It’s informed by your BATNA and your goals, but it’s the concrete price or terms you’re ready to accept during this round of bargaining.

Integrative versus distributive approaches describe how negotiations create or divide value. An integrative approach seeks mutual gains, exploring interests to expand the pie and find solutions that benefit both sides. A distributive approach treats the deal as a fixed amount to be divided, focusing on claiming value rather than creating it.

All three statements align with standard negotiation concepts, so the best answer is that all of the above are true. In practice, you can pursue integrative gains while still operating within your reservation price and using your BATNA as your safety net.