What Is Zone Agreement

An illustration could make this clearer. Fiona intends to sell her business. She announces her business for $30,000, which is her biggest expectation of what she has determined to be the optimal value, but she will let it go for as little as $25,000, which is her booking price. There is therefore a possible area of correspondence if there is an overlap between these exit positions. If this is not the case, it is very unlikely that the negotiations will succeed. In fact, this will only succeed if a party realizes that their BATNA is not as good as they thought, or if they decide to accept the deal for some other reason, even though another option could lead to better results.