Skip to Main Content
HBS Online
  • Courses
    Open Courses Mega Menu
    • Business Essentials
      • Credential of Readiness (CORe)
      • Business Analytics
      • Economics for Managers
      • Financial Accounting
    • Leadership & Management
      • Leadership Principles
      • Management Essentials
      • Negotiation Mastery
      • Organizational Leadership
      • Strategy Execution
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
    • Entrepreneurship & Innovation
      • Entrepreneurship Essentials
      • Disruptive Strategy
      • Negotiation Mastery
      • Design Thinking and Innovation
      • Launching Tech Ventures
    • Strategy
      • Strategy Execution
      • Business Strategy
      • Economics for Managers
      • Disruptive Strategy
      • Global Business
      • Sustainable Business Strategy
    • Finance & Accounting
      • Financial Accounting
      • Leading with Finance
      • Alternative Investments
      • Sustainable Investing
    • Business in Society
      • Sustainable Business Strategy
      • Global Business
      • Sustainable Investing
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
    • All Courses
  • For Organizations
    Open For Organizations Mega Menu
    • Corporate Learning
      Help your employees master essential business concepts, improve effectiveness, and expand leadership capabilities.
    • Academic Solutions
      Integrate HBS Online courses into your curriculum to support programs and create unique educational opportunities.
    • Need Help?
      • Frequently Asked Questions
      • Contact Us
    • Black, Latinx, and underrepresented minority professionals
      Pathways to Business

      Stories designed to inspire future business leaders.

  • Insights
    Open Insights Mega Menu
    • Business Insights Blog
      • Career Development
      • Communication
      • Decision-Making
      • Earning Your MBA
      • Entrepreneurship & Innovation
      • Finance
      • Leadership
      • Management
      • Negotiation
      • Strategy
    • All Topics
    • Sample Business Lessons and E-Books

      Gain new insights and knowledge from leading faculty and industry experts.

    • Free Guide

      Learn how to formulate a successful business strategy.

  • More Info
    Open More Info Mega Menu
    • Learning Experience
      Master real-world business skills with our immersive platform and engaged community.
    • Certificates, Credentials, & Credits
      Learn how completing courses can boost your resume and move your career forward.
    • Learning Tracks
      Take your career to the next level with this specialization.
    • Financing & Policies
      • Employer Reimbursement
      • Payment & Financial Aid
      • Policies
    • Connect
      • Student Stories
      • Community
    • Need Help?
      • Frequently Asked Questions
      • Request Information
      • Support Portal
    • Apply Now
Login
My Courses
Access your courses and engage with your peers
My Account
Manage your account, applications, and payments.
HBS Home
  • About HBS
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
HBS Online
  • Courses
  • Business Essentials
  • Leadership & Management
  • Entrepreneurship & Innovation
  • Strategy
  • Finance & Accounting
  • Business in Society
  • For Organizations
  • Insights
  • More Info
  • About
  • Support Portal
  • Media Coverage
  • Founding Donors
  • Leadership Team
  • Careers
  • My Courses
  • My Account
  • Apply Now
  • …→
  • Harvard Business School→
  • HBS Online→
  • Business Insights→

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

 
Filter Results Arrow Down Arrow Up

Topics

Topics

  • Accounting
  • Analytics
  • Business Essentials
  • Business in Society
  • Career Development
  • Communication
  • Community
  • ConneXt
  • Decision-Making
  • Earning Your MBA
  • Entrepreneurship & Innovation
  • Finance
  • Leadership
  • Management
  • Marketing
  • Negotiation
  • News & Events
  • Productivity
  • Staff Spotlight
  • Strategy
  • Student Profiles
  • Technology
  • Work-Life Balance

Courses

Courses

  • Alternative Investments
  • Business Analytics
  • Business Strategy
  • CORe
  • Design Thinking and Innovation
  • Disruptive Strategy
  • Economics for Managers
  • Entrepreneurship Essentials
  • Financial Accounting
  • Global Business
  • Launching Tech Ventures
  • Leadership Principles
  • Leadership, Ethics, and Corporate Accountability
  • Leading with Finance
  • Management Essentials
  • Negotiation Mastery
  • Organizational Leadership
  • Power and Influence for Positive Impact
  • Strategy Execution
  • Sustainable Business Strategy
  • Sustainable Investing
Subscribe to the Blog
*
Please complete this required field.
Email must be formatted correctly.
Please complete all required fields.
RSS feed

Filters

Topics

Topics

  • Accounting
  • Analytics
  • Business Essentials
  • Business in Society
  • Career Development
  • Communication
  • Community
  • ConneXt
  • Decision-Making
  • Earning Your MBA
  • Entrepreneurship & Innovation
  • Finance
  • Leadership
  • Management
  • Marketing
  • Negotiation
  • News & Events
  • Productivity
  • Staff Spotlight
  • Strategy
  • Student Profiles
  • Technology
  • Work-Life Balance

Courses

Courses

  • Alternative Investments
  • Business Analytics
  • Business Strategy
  • CORe
  • Design Thinking and Innovation
  • Disruptive Strategy
  • Economics for Managers
  • Entrepreneurship Essentials
  • Financial Accounting
  • Global Business
  • Launching Tech Ventures
  • Leadership Principles
  • Leadership, Ethics, and Corporate Accountability
  • Leading with Finance
  • Management Essentials
  • Negotiation Mastery
  • Organizational Leadership
  • Power and Influence for Positive Impact
  • Strategy Execution
  • Sustainable Business Strategy
  • Sustainable Investing
Subscribe to the Blog
*
Please complete this required field.
Email must be formatted correctly.
Please complete all required fields.
RSS feed

Understanding ZOPA: The Zone of Possible Agreement

Two men shaking hands
  • 14 Sep 2017
Marcela Merino Author Staff
tag
  • Negotiation
  • Negotiation Mastery

Have you ever wondered what it takes to effectively prepare for negotiation success? An understanding of the Zone of Possible Agreement (ZOPA) is critical to a successful outcome. Where there is a ZOPA, people usually reach an agreement.

What Is the Zone of Possible Agreement?

The Zone of Possible Agreement, or ZOPA, is the range in a negotiation in which two or more parties can find common ground. Here, the negotiating parties can work toward a common goal and reach a potential agreement that incorporates at least some of the other’s ideas. ZOPA is also sometimes referred to as the “bargaining range" or "bargaining zone."

Positive Bargaining Zone

When the terms that both parties are willing to agree to overlap, there is said to be a positive bargaining zone. That is, the terms the buyer agrees to clearly align with the terms the seller is willing to accept.

Take the sale of a used car, for example. The buyer is hoping to purchase a vehicle for a price between $2,500 and $3,000. The seller is willing to sell for a price between $2,750 and $3,250. In this scenario, a positive bargaining zone exists between $2,750 and $3,000, where both the buyer and the seller’s terms can be met.

Negative Bargaining Zone

When the terms that both parties are willing to agree to don’t overlap, there is said to be a negative bargaining range—also called a Negative Zone of Possible Agreement or Negative ZOPA. In these instances, a deal can’t be reached under current circumstances unless one or both parties are willing to adjust their view of what is acceptable.

In the case of the used car, a negative bargaining zone would exist if the buyer and seller could not reach an agreement. If the buyer is willing to pay no more than $3,000, yet the seller is willing to accept no less than $3,500, then neither party’s terms can be met.

Best Alternative to a Negotiated Agreement

In addition to understanding the ZOPA and negative ZOPA in a negotiation, you should also consider your Best Alternative to a Negotiated Agreement, or BATNA, before any discussions take place. The BATNA is the course of action a party will take if no agreement can be reached during a negotiation. In other words, a party’s BATNA is what they plan to fall back on if a negotiation is unsuccessful.

Example of ZOPA in Negotiation

Harvard Business School Online Professor Mike Wheeler tackles this and other important negotiation concepts in his Negotiation Mastery course. To start, let’s listen to Professor Wheeler as he gives us a quick introduction of the Bridport case, highlighted in the course, and the concept of ZOPA:


In this example, a successful bed and breakfast called the Easterly is negotiating with Brims, a chain of coffee shops in the area, to prevent the construction of a building which would impede the inn’s view. As such, the Easterly is attempting to buy the neighboring land from Brims at a reasonable price.

Of course, the seller wants to drive the price up while the buyer wants to push it down. Here, the ZOPA exists where both the buyer and the seller are willing to settle the deal. That's what makes real-world negotiation interesting: Sometimes multiple outcomes could work for all parties, where there may be limited options in other scenarios.

The actual size of the ZOPA depends on how the perceptions of particular pairs of negotiators line up, especially in regards to their walkaway numbers. A price that could work in the first example might be rejected in the second, even though both pairs are negotiating the same problem.

Finding the Zone of Possible Agreement

Here are some key points to keep in mind when assessing ZOPA that will help you be better prepared when it comes to negotiating, and ultimately increase your chances of reaching a deal.

1. Your Success Depends on More Than Just Skill

Luck, good or bad, plays a role. You don't always know who you'll negotiate with on a given day. Some people will be unreasonable while others may be willing to offer more than you'd ever hoped. While you should always employ your best negotiation tactics, remember that some circumstances will always be out of your control.

2. Know Your Limits

It's a huge advantage to know the upper and lower boundaries of a ZOPA. A negotiator is understandably reluctant to disclose their walkaway, or bottom line, as it’s the least attractive deal they would accept before walking away from the negotiation. By knowing the boundaries of a ZOPA, it's possible to push your counterpart close to their limit to reach a favorable deal.

Negotiation Mastery - Get your free salary negotiation tool. Learn more.

3. The Situation Can Change

The ZOPA can grow, shrink, or disappear during the course of a negotiation as parties refine their own priorities and reassess each other's walkaways. When preparing for a negotiation, remember that the situation can always change. Being able to adapt to these changes is a key factor to being a successful negotiator.

4. The ZOPA Can Be Shaped

As shown throughout the Negotiation Mastery course, much of the interaction in a negotiation is about shaping perceptions of the ZOPA through persuasion and other tactical moves, as this is more likely to lead to an agreement.

5. Preparation Matters

Studies have shown that, in cases like Bridport, the parties’ initial aspirations and expectations before they ever get to the bargaining table have nearly the same impact on the final outcome as whatever they do and say once they get there. That's why rigorous preparation is essential.

Going into a negotiation, you seldom know how big the ZOPA is or whether there's room for agreement at all. If you’ve prepared well, you'll have set a provisional walkaway line. That establishes one boundary of the ZOPA, but the other boundary, your counterpart’s walkaway, will be obscure at best, just as your walkaway will be uncertain to them. That mutual uncertainty underlies much of the dance of offers and counteroffers that follows.

Related: How Emotion Can Impact a Negotiation

Mastering the Art of Negotiation

Negotiations are complex, with many factors contributing to the final outcome, but they don’t need to be an agonizing experience. Proper preparation and a solid understanding of key negotiation concepts and strategies can help you create maximum value in the agreements you reach.

Do you want to deepen your understanding of negotiation dynamics? Explore our eight-week online course Negotiation Mastery and learn how you can develop the skills and techniques needed to effectively close deals and reach agreements.

This post was updated on February 18, 2020. It was originally published on September 14, 2017.

About the Author

Marcela served as a Product Manager at HBS Online for the Negotiation Mastery and Leading with Finance courses. Prior to joining HBS Online, she worked as a Research Associate at the Institute for Strategy and Competitiveness within HBS. In her spare time, she enjoys being with her dogs, Peanut and Lila, as well as playing tennis. Marcela holds a Master's in International Economics and Finance from Brandeis University, an MBA from Nebrija University in Spain, and a business degree from UNITEC in Honduras.
 
All FAQs

Top FAQs

How are HBS Online courses delivered?

+–

We offer self-paced programs (with weekly deadlines) on the HBS Online course platform.

Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community.

Are HBS Online programs available in languages other than English?

+–

We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English.

All course content is delivered in written English. Closed captioning in English is available for all videos. There are no live interactions during the course that requires the learner to speak English. Written English proficiency should suffice.

Do I need to come to campus to participate in HBS Online programs?

+–

No, all of our programs are 100 percent online, and available to participants regardless of their location.

How do I enroll in a course?

+–

All programs require the completion of a brief application. The applications vary slightly from program to program, but all ask for some personal background information. You can apply for and enroll in programs here. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.

Our easy online application is free, and no special documentation is required. All applicants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

After submitting your application, you should receive an email confirmation from HBS Online. If you do not receive this email, please check your junk email folders and double-check your account to make sure the application was successfully submitted.

Updates to your application and enrollment status will be shown on your Dashboard. We confirm enrollment eligibility within one week of your application.

Does Harvard Business School Online offer an online MBA?

+–

No, Harvard Business School Online offers business certificate programs.

What are my payment options?

+–

We accept payments via credit card, wire transfer, Western Union, and (when available) bank loan. Some candidates may qualify for scholarships or financial aid, which will be credited against the Program Fee once eligibility is determined. Please refer to the Payment & Financial Aid page for further information.

We also allow you to split your payment across 2 separate credit card transactions or send a payment link email to another person on your behalf. If splitting your payment into 2 transactions, a minimum payment of $350 is required for the first transaction.

In all cases, net Program Fees must be paid in full (in US Dollars) to complete registration.

What are the policies for refunds and deferrals?

+–

After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ.

 

Sign up for News & Announcements


  • • Please complete this required field.
  • • Email must be formatted correctly.
  • • Please complete all required fields.

Subject Areas

  • Business Essentials
  • Leadership & Management
  • Entrepreneurship & Innovation
  • Strategy
  • Finance & Accounting
  • Business & Society

Quick Links

  • FAQs
  • Contact Us
  • Request Info
  • Apply Now
  • Support Portal

About

  • About Us
  • Media Coverage
  • Founding Donors
  • Leadership Team
  • Careers @ HBS Online

Legal

  • Legal
  • Policies
Harvard Business School
Copyright © President & Fellows of Harvard College
  • Site Map
  • Trademark Notice
  • Digital Accessibility