Examples of a Negative Bargaining Zone
Let’s say Matt would like to sell his used laptop. He believes it is in great condition and won’t accept anything less than $500. The buyer, Kyle, has a budget of $400 and is unwilling to pay more. Neither Matt nor Kyle will compromise to make a deal.
Cora is looking to purchase new accounting software for her budgeted price of $100. In effort to keep her business expenses low, she will not spend any more than that. Lily, the developer of this new software, is trying to attract businesses so she reached out to Cora. However, Lily believes the software is worth at least $150 and won’t come down. Neither Cora or Lily are willing to agree on a deal.
Both of these examples were unable to reach a zone of possible agreement and are therefore in a negative bargaining zone.