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Paul is selling his car and refuses to sell it for less than $5,000. Jane is...

Paul is selling his car and refuses to sell it for less than $5,000. Jane is interested in purchasing the car and starts negotiating with Paul. She is unwilling to pay more than $4,500. What is the ZOPA (Zone of Possible Agreement) for this negotiation?

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Answer #1

There are two negotiation zones of ZOPA. These zones are a negative bargaining zone and a positive barging zone. In the provided case, Paul is willing to sell his car at a price not less than $5,000. Jane wants to buy it but has only $4,500 to pay. In this case, ZOPA is a negative bargain zone. It is because both of the parties have different things to offer to each other. Paul has a car to sell but wants no less than $5,000 in return, Jane wants to buy it but has only $4,500 to pay. Hence, they both will walk away without having any deal because of a negative bargain zone.

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