You are negotiating with an employer for your first job out of college. You are thinking through how much they might be able to give you, and realize that there are 100's of other people that they can hire besides you, and so they likely aren't desperate to hire you. If you are thinking through these elements, you are: Assessing your own BATNA Assessing the other party's BATNA Evaluating a zone of possible agreement Calculating a package reservation value