In the case of the used car, there would be a negative bargaining area if the buyer and seller do not reach an agreement. If the buyer is willing not to pay more than $3000, but the seller is willing to accept no less than $3,500, then the conditions cannot be met any of the parties. Colin needs a car and negotiates with Tom to buy his car. Tom offers to sell his car to Colin for $10, 000. Colin searches Craigslist and finds a similar car to which he attributes a value of 7,500 dollars. Colin`s BATNA costs $7,500 — if Tom doesn`t offer a price of less than $7,500, Colin will consider his best alternative to a negotiated contract. Colin is willing to pay up to 7,500 $US for the car, but ideally he would only pay $5,000. Relevant information is presented below: Leave a comment below and let us know if you have found your ZOPA in the economy to reach an agreement. In the theory of negotiations, the best alternative to a negotiated agreement or BATNA (no deal option) refers to the most advantageous alternative that a party can take if negotiations fail and no agreement can be reached. WATNA (worst alternative to a negotiated agreement) is quite the opposite of this option.

BATNA could include several situations, such as the suspension of negotiations, the transition to another negotiator, the appeal of the court`s judgment, the organization of strikes and the formation of other forms of alliances. [1] BATNA is the main concern and driving force of a successful negotiator. A party should generally not accept a resolution worse than its BATNA. However, it is important to ensure that transactions are accurately assessed, taking into account all considerations such as relational value, the present value of the money and the likelihood that the other party will live up to the bargain. These other considerations are often difficult to assess because they are often based on uncertain or qualitative considerations and are not easily measurable and quantifiable. It is simply not a proven method if you do not manage to have feasible alternatives when you enter into a negotiation. With attractive and achievable alternatives, you can confidently reach a mutually beneficial agreement. It also allows you to go with a satisfactory alternative. The Zone of Possible Agreement (ZOPA) is the area of negotiation in which two or more parties can find common ground.

In this regard, the parties to the negotiations can strive to achieve a common goal and reach a possible agreement that includes at least some of the ideas of others. The ZOPA is sometimes referred to as a „negotiation margin“ or „negotiation area.“ Take, for example, the sale of a used car. The buyer hopes to buy a vehicle at a price between 2,500 and 3,000 $US. The seller is willing to sell for between 2,750 and 3,250 $US. In this scenario, there is a positive trading area between $2,750 and $3,000, in which the buyer and the seller`s terms and conditions can be met. The following graph shows the best alternative for each party to a negotiated deal (seller and buyer): If Tom in the chart above asks for a price in excess of $7,500, Colin will conduct his business elsewhere. In the example, we are not supplied with Tom`s BATNA. If Tom is expected to sell his car to someone else for $8,000, it is Tom`s BATNA. In such a scenario, no deal is reached, since Tom is only willing to sell for at least $8,000, while Colin is only willing to buy for a maximum of $7,500. A ZOPA exists if there is a horse between the price of booking each part (below). A negative trading area is when there is no overlap. With a negative bargaining area, both parties can (and should) leave.

Your zopa analysis should begin with a review of your best alternative to a negotiated deal or BATNA, write Roger Fisher, William Ury and Bruce Patton in their groundbreaking negotiating text Getting to Yes: Negotiating Agreement Without Giving In.