What Is The Zone Of Possible Agreement

If the conditions to which the two parties disagree do not overlap, it is said that there is a negative area of negotiation – also called the negative zone of possible agreement or negative ZOPA. In these cases, in the present circumstances, an agreement can only be reached if one or both parties are willing to adapt their view of the acceptable. Avoiding these double dangers – either the adoption of a below-average deal, or the exit of a large market – begins with a thorough preparation for negotiations, including a precise understanding of the area of a possible agreement, or ZOPA. For example, a lender wants to borrow money at a certain interest rate for a certain period of time. A borrower who is willing to pay this rate and accept the repayment period shares a CCA with the lender, and both parties can reach an agreement. According to researchers Taya R. Cohen (Carnegie Mellon University), Geoffrey J. Leonardelli (University of Toronto) and Leigh Thompson (Northwestern University), negotiators can fall victim to the unification trap for a number of reasons. First, one party might be able to hide the fact that a proposed agreement would not be in the best interests of the other party. For example, a contractor might try to overload an owner when bidding for a renovation project. ZOPA`s negotiating room is essential to the success of the negotiations. However, it may take some time for a ZOPA to be found; it can only be known when the parties consider their different interests and options. If contestants can identify ZOPA, there is a good chance they will reach an agreement.

In addition to understanding ZOPA and negative ZOPA during a negotiation, you should also consider your best alternative to a negotiated agreement (BATNA) before any discussion. BATNA is the modus operandi that a party will adopt in the event of no agreement during a negotiation. In other words, a party`s BATNA is what it wants to build on if a negotiation fails. When you enter into a negotiation, you rarely know the size of the ZOPA or whether there is room for an agreement. If you have prepared well, you have set a temporary line. This defines a limit of THE ZOPA, but the other frontier, the path of the equivalent, will be opaque at best, just as its path will not be safe for them. This mutual uncertainty rests on much of the dance of offers and counter-offers that follows.