What can we learn from the following case? A. The importance of knowing your BATNA before negotiation. B. The wisdom of choice. Long before the acronym BATNA was invented, savvy operators kept their best alternatives in mind as they dealt with opponents. Consider France’s Louis XI, one of the most crafty monarchs in fifteenth-century Europe. When England’s Edward IV brought his army across the Channel to grab territory from his weaker rival, the French king decided to negotiate. Knowing that his BATNA was to fight a long and costly war, Louis calculated that it was safer and cheaper to strike a deal with Edward. So he signed a peace treaty with the English in 1475, paying 50, 0-00 crowns up front and an annuity of 50, 000 crowns for the rest of Edward’s life (which proved to be short). To seal the deal, Louis treated his royal counterpart and the English army to forty-eight hours of eating, drinking, and merrymaking. As an added token, he assigned the Cardinal of Bourbon to be Edward’s jolly companion” and to forgive his sins as he committed them. As Edward and his army staggered back to their boats, ending the Hundred Years War, Louis remarked:” I have chased the English out of France more easily than my father ever did; he drove them out by force of arms while I have driven them out by force of meat pies and good wine. “Such is the power of negotiating when you know your BATNA.
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