What determines a negotiator's bargaining power?
A)the negotiator's market share
B)the market equilibrium price
C)the number of rivals
D)the negotiator's next best alternative

Question

Quizplus · Accepted Answer

A negotiator's bargaining power is determined by their next best alternative or BATNA (Best Alternative To a Negotiated Agreement). This refers to the negotiator's ability to pursue an alternative course of action if the negotiation fails. The stronger a negotiator's BATNA, the greater their bargaining power because they have less to lose if a negotiation falls through. Factors such as market share, market equilibrium price, and number of rivals may influence a negotiator's BATNA, but ultimately it is the BATNA itself that determines bargaining power.

What Determines a Negotiator's Bargaining Power