In order to reach an agreement or agreement, the negotiating parties must strive to achieve a common goal and aim for an area that encompasses at least some of the ideas of each party. This area of compromise is seen as the area of a possible agreement. When you enter into a negotiation, you rarely know the size of the ZOPA or whether there is room for an agreement. If you have prepared well, you have set a temporary line. This defines a limit of THE ZOPA, but the other frontier, the path of the equivalent, will be opaque at best, just as its path will not be safe for them. This mutual uncertainty rests on much of the dance of offers and counter-offers that follows. The success of the negotiations depends on the creation of a ZOPA, which will be understood by both parties. This requires both parties to discuss and explain their own interests and values, as well as their “lower line” – the boundaries of their area outside which they cannot agree. Ideally, this should be done at the beginning of the negotiation process. Have you ever wondered what it takes to prepare effectively for the success of the negotiations? Understanding the Area of Agreement of Possibles (ZOPA) is essential for the result to be successful. Where there is a ZOPA, an agreement is usually reached. Let`s say, for example, that Dave wants to sell his mountain bike and equipment for $700 to buy new skis and ski equipment.
Suzy wants to buy the bike and equipment for 400 dollars and can`t go higher. Dave and Suzy did not reach ZOPA; they are in a negative bargaining area. 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. 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.
On the other hand, the buyer wants to pay the lowest amount possible, but he can consider a higher amount that he may be willing to pay. The maximum amount they are willing to pay is also called “booking price” or “departure” from the point of the buyer`s agreement. 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 Concept Zone of a Possible Agreement (ZOPA), also known as the Zone of Potential Agreement  or bargaining margin, describes the range of options available to two parties in the sale and negotiations when the respective minimum objectives of the parties overlap.