September 19, 2021...11:21 am

Example Of Possible Agreement

It is a great advantage to know the upper and lower limits of a ZOPA. It is understandable that a negotiator would be reluctant to reveal his departure or his final result, as this is the least attractive deal he would accept before moving away from the negotiation. By knowing the limits of a ZOPA, it is possible to bring your opponent closer to his limits to obtain an advantageous activity. As for the used car, there would be a negative negotiation area if the buyer and seller do not reach an agreement. If the buyer is willing to pay no more than 3000 $US, but the seller is willing to accept no less than 3500 $US, neither party can meet the conditions. The Possible Area of Agreement (ZOPA) is the area of a negotiation where two or more parties can find common ground. Behind each position, there are usually more common interests than contradictions. [4] On the other hand, if there is no overlap between the booking points of the two (or more) parties – for example, if the applicant accepts no less than $70,000 and the organization pays no more than $US 65,000, then there is no ZOPA and both parties would be better able to track their BATNs. In the example above, Sarah is not willing to pay more than $4500, and Paul accepts no less than $5,000 $US. Sarah may be willing to throw a few skis that she received as a gift, but never used. Paul, who wanted to use some of the money from the car to buy a few skis, agrees..

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