BATNA, or Best Alternative to a Negotiated Agreement, is a concept in negotiation that refers to the best option available to a party if negotiations fail. It serves as a benchmark against which any proposed agreement can be measured. Understanding your BATNA helps you make informed decisions and strengthens your negotiating position. Having a strong BATNA can increase your confidence during negotiations, as it provides a fallback plan. If the terms offered are not favorable, knowing your alternatives allows you to walk away without feeling pressured. This strategic approach can lead to better outcomes and more favorable agreements.