Until the other party's reservation point is known and each party realizes that a positive bargaining zone exists, it is difficult to negotiate effectively.

Question

Quizplus · Accepted Answer

Until each party has an understanding of the other party's reservation point (minimum acceptable outcome), they won't know whether there is potential for a positive bargaining zone (range of outcomes that both parties find acceptable). This makes effective negotiation challenging as both parties may be unsure of what concessions to make.

Until the Other Party's Reservation Point Is Known and Each