Finding ZOPA
AtomicIdeas on negotiation
We are always negotiating..be it in business or personal life.
Negotiations can be fraught with potential missteps. The clarity provided by identifying the Zone of Possible Agreement (ZOPA) can help to circumvent two typical negotiation errors – accepting an unwise deal or walking away from a favorable one.
Through effective preparation and understanding of the concept of ZOPA, one can equip themselves to stride confidently into any negotiation scenario.
The Agreement Trap and Escalation of Commitment
During business negotiations, individuals often succumb to two major errors – reaching accord when advisable against it and exiting when the result could have been mutually advantageous.
The first error is known as the ‘agreement trap’, marked by a tendency to agree to an inferior deal as compared to the Best Alternative To a Negotiated Agreement (BATNA).
Such a pitfall can be because of the other parties hiding facts to their advantage, or because of the ‘escalation of commitment’, wherein people are reluctant to abandon negotiations due to a substantial investment in time, money, and energy even when the deal is not favorable.
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