Every negotiation is a game. Game theory provides the framework to analyze it rigorously. But the goal is not to "win" against your counterpart - it's to create the most value possible and then divide it fairly.

BATNA (Best Alternative to Negotiated Agreement) is your source of power. The stronger your alternative, the more you can demand. But equally important is understanding your counterpart's BATNA - their reservation point determines what's possible.

The Zone of Possible Agreement (ZOPA) exists where both parties can do better than their alternatives. A skilled negotiator expands the ZOPA by identifying hidden value - trades where parties value items differently, creating gains from exchange.

In this topic, you'll learn to prepare strategically, make optimal first offers, create value through logrolling and contingent contracts, and reach agreements that leave both parties better off. The masters knew: sustainable deals are fair deals.