A tenant is negotiating a lease renewal. Initially, their only alternative to the landlord's proposed rent increase is to move out, which is costly and difficult. During the negotiation, a new law is passed that improves the tenant's alternatives. Arrange the following events in the logical order that demonstrates how an improved fallback option leads to a better contract offer.
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For each negotiation scenario, match it with the correct impact on the primary negotiator's reservation position (their 'best alternative' or 'fallback option').
A tenant is negotiating a lease renewal. Initially, their only alternative to the landlord's proposed rent increase is to move out, which is costly and difficult. During the negotiation, a new law is passed that improves the tenant's alternatives. Arrange the following events in the logical order that demonstrates how an improved fallback option leads to a better contract offer.
In a two-party negotiation, if an external change (such as a new social policy) improves one party's fallback option, their minimum acceptable outcome becomes higher. This improved fallback option then acts as a direct ________ on the set of possible agreements, compelling the other party to propose a more generous offer.