BATNA, or Best Alternative to a Negotiated Agreement, is a concept in negotiation theory that refers to the most advantageous course of action a party can take if negotiations fail. It serves as a benchmark against which any proposed agreement should be measured. Understanding your BATNA helps you make informed decisions and strengthens your negotiating position. In practice, knowing your BATNA allows you to walk away from a negotiation if the terms are not favorable. It encourages confidence and clarity, ensuring that you do not accept a deal that is worse than your alternative options. This concept is crucial for effective negotiation strategies.