Final answer:
A bargaining range is the range of acceptable outcomes for both parties in a negotiation. A settlement is more likely if the bargaining ranges overlap, as it allows for potential compromise and agreement within that overlapping zone.
Step-by-step explanation:
A bargaining range refers to the range of acceptable outcomes for both parties involved in a negotiation. It represents the zone in which a settlement can be reached. When bargaining ranges overlap, it increases the likelihood of a settlement because there is potential for compromise and agreement within that overlapping zone.
For example, if one party is willing to pay between $50,000 and $60,000 for a car, and the other party is willing to sell it for between $55,000 and $65,000, their bargaining ranges overlap between $55,000 and $60,000. In this case, there is a greater chance of reaching a settlement within that range since both parties are willing to accept offers within that window.