Page 14 - Becoming a Better Negotiator

Plaintiff. Although settlement may not have been possible in this example, knowing your price and bargaining toward it consistently is much more likely to lead to settlement.
D. Zone of Possible Agreement
The Harvard Program on Negotiation (“PON”) defines the Zone of Possible Agreement (“ZOPA”) as the overlap between the highest price the buyer is willing to pay and the lowest price the seller is willing to accept. If there is an overlap, the parties should be able to strike a deal. If there is no overlap, there is not going to be an acceptable deal (so called negative ZOPA).
Plaintiff’s Reservation Price
Plaintiff’s Settlement Range
ZOPA
Defendant’s Settlement Range
Defendant’s Reservation Price
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