Final answer:
The range of options between initial and final offers in negotiations is known as the bargaining range or zone of possible agreement (ZOPA). It is a key concept in negotiation theory and determines the likelihood of reaching a compromise or the negotiations resulting in the status quo.
Step-by-step explanation:
The range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse is known as the bargaining range or zone of possible agreement (ZOPA). This concept is a crucial element of negotiation theory and is applicable in various contexts, including political bargaining, business, and personal negotiations.
In political bargaining, the parties involved may have different objectives, such as wanting to raise or lower taxes. If their goals are diametrically opposed, reaching a compromise becomes challenging, leading to the status quo prevailing. However, when the parties involved have similar end goals, such as reducing greenhouse gas emissions, they are likely to reach a compromise through negotiations, splitting the difference to achieve a mutually acceptable agreement.
The complexities of real-life negotiations involve many actors, varying resources, and multifaceted bargaining strategies, including the use of threats and deception. Understanding the bargaining range is essential, as it determines the space within which agreements can be reached before negotiations come to a halt.