It is not a physical place, the area of possible agreement or the margin of negotiation that is seen as an area in which two or more parties to the negotiation can find a common basis. In this area, the parties will often compromise and reach an agreement. In order to reach an agreement or agreement, the negotiating parties must move towards a common goal and aim for an area that encompasses at least some of the ideas of each party. ZOPA can easily be confused with two other terms that describe the possible results of a negotiation: batna and booking price. The ZOPA negotiations focus on the extent to which agreements can be reached so that both parties can meet the agreement. THE ZOPA is also known as “negotiation margin.” An illustration might make it clearer. Fiona intends to sell her belongings. She advertises for her company for 30,000, which is her biggest expectation of what she has determined as the optimal value, but she will let it go for as low as 25,000, which is her booking price. On the other hand, inclusive negotiations are designed to create values or “increase the cake.” This is possible when the parties have common interests or deal with several issues. In this case, the parties can combine their interests and negotiate between several topics in order to create a common value. In this way, both parties can “win,” even if neither side receives everything they originally thought possible. If, in the example above, the rewriting of the job description could create additional employment, distribution negotiation would become an inclusive negotiation between the employer and the two potential workers. If both candidates are qualified, they can now get both jobs.
ZoPA exists in this case when two jobs are created and each candidate prefers one of the two. Adapted from “Learn to Negotiate with an Open Mind,” first published in the De Negotiation newsletter. After a difficult negotiation, it is tempting to forget them and continue. Regrets caused by a counterfactual thought or a reflection on “what could have been” can be so painful that many people will do everything they can to… Read more The buyer, on the other hand, wants to pay the lowest amount possible, but may consider a higher amount that he may be willing to pay.