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The zone of possible agreement (ZOPA), or bargaining range,[1] describes the intellectual zone in sales and negotiations between two parties where an agreement can be met which both parties can agree to. Within this zone, an agreement is possible. Outside the zone no amount of negotiation will yield an agreement.

ZOPA graphic
Zone of Possible Agreement shown graphically
For example, take a person willing to lend money at a certain interest rate over a certain period of time and a person wanting to borrow money at a certain rate. If both parties can agree a rate and period then a ZOPA can be established.

An understanding of the ZOPA is critical for a successful negotiation.[1] To determine whether there is a ZOPA both parties must explore each other's interests and values. This should be done early in the negotiation and be adjusted as more information is learned.

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