Zone Of Possible Agreement

Definition of 'Zone Of Possible Agreement'


Not a physical place, the zone of possible agreement is considered an area where two or more negotiating parties may find common ground. It is this area where parties will often compromise and strike a deal.

Investopedia explains 'Zone Of Possible Agreement'


In order for negotiating parties to find a settlement or reach an agreement they must work towards a common goal and seek an area that incorporates at least some of each party's ideas. This area of compromise is considered the zone of possible agreement.



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