Week 3 -- BATNA

When we do problems with BATNAs, we’re just saying that the surplus for the buyer = the surplus for the seller. In other words, the buyer and seller are better off by equal amounts (symmetry). That sum is what we’re trying to solve for.

So, Payoff for B – BATNA B = Payoff for A – BATNA A.

If you keep it this simple, it should give you the right answer every time. We hope :)

^_^