September 2007
Beginner
224 pages
2h 42m
English
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Truth 16. Beware of ZOPA myopia
Now, let’s put together what you’ve learned so far. If I have a BATNA, so do you. If I have a reservation point, so do you. The $64 million dollar question (inflation), then, is whether there’s a positive overlap between my reservation point and yours.
The bargaining zone represents the overlap (or lack thereof) between your reservation point and mine. The zone of possible agreement, or ZOPA, represents the overlap between the most the buyer is willing to pay and the least the seller is willing to accept.
I always think of ZOPAs like a “dance floor.” I envision two negotiators dancing, each trying to lead the other to his reservation point. It’s possible that there’s no space on the dance floor, meaning that the ...
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