I thought that's the essence of good-faith negotiation, when either side has the freedom to say "No Deal" and walk away.
It is poor negotiating strategy to say "Give me a raise or I leave.", because then your boss will be thinking about replacing you. Instead, you say something like "I've been here ## time without an increase. Is it time for an adjustment?" If he says no, then you should seriously think about leaving.
The essence of good-faith negotiation isn't to leave. It's to explore the options.
More often than not, neither party does. One or more parties cling to what they originally thought they wanted, at the expense of an outcome that is better for all parties. This burned me more often than lack of a BATNA.
If you don't get what you want, you had a negotiation with a bad outcome for at least one party. But that doesn't mean the negotiation didn't occur in good-faith.