Assignment Task: Read the following negotiation situation and answer the questions that follow.
Bailey is a Sheridan College student who is beginning a work term with a local organization. Bailey currently lives in residence but would like to find an apartment to rent that is closer to the organization that he will be working for during his work term.
As a result, Bailey is now looking for a suitable apartment that will reduce the commute to work. Bailey cannot afford to spend a lot of money on rent.
Recently, Bailey found a listing for an apartment that would be appropriate. Even though Bailey really likes the apartment, Bailey cannot spend more than $475 / month. After careful research, Bailey would ideally like to rent the apartment for $400 / month.
Sandy is the apartment building manager and has spoken with Bailey about the apartment on previous occasions. Given the good location of the apartment, Sandy would like to rent it for $450 month. Because the demand for the apartment is high, Sandy will not rent it for anything less than $425 month.
a) What is Sandy's target point?
b) What is Bailey's reservation price?
c) What is Sandy's reservation price?
d) What is Bailey's Best Alternative To Negotiated Agreement (i.e., BATNA)?
e) What is Sandy's Best Alternative To Negotiated Agreement (i.e., BATNA)?