ABSTRACT
The Zone of Potential Agreement (ZOPA) describes the area where agreement may be met between two parties. ZOPA is about setting targets of a negotiation and minimum ‘fall-back’ positions. The limits of ZOPA represent each party’s fall-back position which either party would ‘walk-away’. The ZOPA demonstrates the various positions that can be taken when attempting to reach agreement. When establishing a fall-back position, it is important to remember to develop a package of variables in order to create a bargaining mix with which to negotiate. It is also necessary to identify those variables that are ‘throwaways’ and those that are ‘trade-offs’, so that concessions can be elicited from the other party who may place more value on them. Critics have suggested that the model fails to allow for creativity, because each party’s fall-back position is already predetermined.
