Zone Of Possible Agreement - Definition

A "Zone of Possible Agreement" (ZOPA) exists if there is a potential agreement that would benefit both sides more than their alternative options do. For example, if Fred wants to buy a used car for $5,000 or less, and Mary wants to sell one for $4,500, those two have a ZOPA. But if Mary will not go below $7,000 and Fred will not go above $5,000, they do not have a zone of possible agreement.

Though even when it appears that ZOPA is apparently zero some creative agreement could be found. For example when two people compete for one job. The ZOPA is apparently zero. The solution is to "enlarge the pie". For example change job description so it will be enough place for job integration of two people.

The ZOPA is critical to the successful outcome of negotiation, but it may take some time to determine whether a ZOPA exists. It may only become known once the parties explore their various interests and options. If the disputants can identify the ZOPA, there is a good chance that they will come to an agreement.



Terms near "Zone Of Possible Agreement"

Zone Of Support
Zoning Ordinance
Zvi Griliches
ZWD
ZZZZ Best
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