Discussion
· Larry is buying a condo from Megan.
· Four prices that are the focus:
· Megan’s asking price – (Target) Initial price $145,000
· The Price Larry wants to pay – Target price $135,000 (Optimal goal) Negotiator’s Aspirations
· The price above which Larry would not buy the condo. His bottom line – resistance point/reservation price $150,000. The price Megan won’t sell is $130,000
· Bargaining Zone – Between the Resistance Points or Reservation Points
$130,000 ----------------$135,000----------------$145,000----------------$150,000
Megan Larry Megan Larry
RP Target Target RP
RESERVATION PRICE