The minimum acceptable outcome below which a negotiator will walk away is called the:

The minimum acceptable outcome below which a negotiator will walk away is called the:

• A. BATNA
• B. Aspiration Point
• C. Reservation Point
• D. ZOPA

Answer: (C)

The minimum acceptable outcome in a negotiation is called the reservation point. It’s the threshold below which you won’t accept an offer, so any proposal that leaves you worse off than that would be rejected. This point is shaped by your BATNA—the best alternative you have if no agreement is reached—and by your real needs and constraints. It’s different from your aspiration point, which is the ideal target you hope to achieve, and from ZOPA, the overlap where both sides could reach an agreement. Understanding your reservation point helps you quickly decide whether a proposed deal is worth pursuing.

The minimum acceptable outcome in a negotiation is called the reservation point. It’s the threshold below which you won’t accept an offer, so any proposal that leaves you worse off than that would be rejected. This point is shaped by your BATNA—the best alternative you have if no agreement is reached—and by your real needs and constraints. It’s different from your aspiration point, which is the ideal target you hope to achieve, and from ZOPA, the overlap where both sides could reach an agreement. Understanding your reservation point helps you quickly decide whether a proposed deal is worth pursuing.