Zone of possible agreement
ZOPA / ZOPA · Bargaining zone
The zone of possible agreement is the range of terms that would be acceptable to both parties, given their alternatives and reservation points, if such a range exists.
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Simply put
What it means in ordinary work
It is the overlap between what each side can accept. If there is no overlap, a negotiated agreement may not be possible on the current issue.
Why it matters
Thinking in a ZOPA helps identify whether there is room for a deal and where value can be created. It also prevents the assumption that every negotiation must end with an agreement.
A hypothetical in practice
A hypothetical buyer can pay up to 120 per unit after accounting for switching costs, while the supplier needs at least 105 to cover its costs. The overlap is narrow, so the parties explore volume stability and payment timing to widen it.
Common pitfalls
You rarely know the other side's exact reservation point. Treat estimates as uncertain and keep testing assumptions.
A ZOPA on price may disappear once service, risk or timing terms are included.
Regional lens
How this lands where you work
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As-of date for date-sensitive regional content: 5 November 2026. Read the review policy.