Ringle Review Jan 12 2024

Topic : The ABCs of Negotiation: BATNA and ZOPA

Basic concept and Quiz

1. Reservation Price : This is the minimum amount you are willing to accept. Anything below this point you will walk away from the negotiation.
2. ZOPA : Zone of Possible Agreement
   This is the range in which a deal can be made.
   The ZOPA is where all the deals you’re willing to accept and all the deals the other party is willing to accept overlap.
3. BATNA : Best Alternative to a Negotiated Agreement
   This is the best option you can get when you walk away from the negotiation.

Quiz: Do you think the following sentence is correct?
‘An insightful lesson derived: it isn’t wise to set your reservation price above your BATNA.

Rephrase

(1)

Before Correction

_{I just want to emphasise that I can’t summarise very well.}

Repharased

I particularly want to emphasize that I lack the ability to summarise things concisely.

(2)

Before Correction

There are three concepts; reservation price, and second, BATNA, and third one is the range between my best reservation price and the counter price; the ZOPA. The point is that we can agree at the range of ZOPA, and we need to drive the best option, the best reservation price among the negotiations, and the restriction line can be better.

Repharased

These are three concepts. The first of these is the concept of reservation price; the second is BATNA, Best Alternative to a Negotiated Agreement; and the third and final concept is ZOPA, Zone of Possible Agreement. The point of negotiation is to first tacitly agree on the range of the ZOPA, and then drive toward the most preferable option, hopefully one above the reservation price, and within both sides’ range.

Vocabulary

1. Tacitly
   when you say imply without directly saying it
   ex)My husband and I have tacitly agreed not to discuss the negative points of one another’s families.
   
   We have a tacit agreement- we have an agreement that we didn’t openly say exists, but we both know that it does.
   ex)I have a tacit agreement with my cat; I feed her, and she doesn’t bite me.
2. Go a long way
   very successful
   If you say that someone will go a long way, you mean that they will be very successful.