Batna Zone Of Agreement

How do you determine your best alternative to a negotiated agreement? First, analyze both your position and your trading interests. Next, look at the sum of these parts compared to all the available options. Select the best option. Finally, do the opposite from the other party`s point of view. A well-prepared negotiator looks at the whole thing in this way. Colin needs a car and negotiates with Tom to buy his car. Tom offers Colin to sell his car to Colin for $10,000. Colin searches Craigslist and finds a similar car to which he attributes a value of $7500. Colins BATNA will cost $7500 – if Tom doesn`t offer a price below $US 7500, Colin will consider his best alternative to a negotiated deal. Colin is willing to pay up to US$7500 for the car, but he would ideally only want to pay $US 5,000. The relevant information is presented below: when entering into a negotiation, one rarely knows how big the ZOPA is or whether there is room for an agreement.

If you have prepared well, you have defined a provisional walking line. This sets a zopa limit, but the other border, your opponent`s walkaway, will be obscure at best, just as your walkaway will be uncertain to them. This reciprocal uncertainty is the basis of much of the dancing offer and the counter-offer. The Possible Area of Agreement (ZOPA) is the area of a negotiation where two or more parties can find common ground. In this regard, the negotiating parties can work towards a common goal and reach a possible agreement that incorporates at least some of the ideas of the other. Zopa is sometimes referred to as a “trading zone” or “negotiation zone”. To determine whether there is a positive trading area, each party must understand its final outcome or its most pessimistic price. For example, Paul sells his car and refuses to sell it for less than $5,000 (his worst price). Sarah is interested and negotiates with Paul…

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