The Reservation Point is defined as:

• A. The best possible outcome you hope to achieve.
• B. The range of acceptable outcomes before walking away.
• C. The minimum outcome you will accept, below which you will walk away.
• D. The zone of possible agreement.

Answer: (C)

The Reservation Point is the minimum outcome you will accept in a negotiation, below which you will walk away. It sets your walk-away threshold and is closely tied to your BATNA—the best alternative you have if no agreement is reached. Any offer at or above this point is worth considering because it meets your bottom line; anything below it isn’t worth accepting since you can pursue your alternative instead.

This helps you act decisively: you’re willing to concede up to your reservation point, but you don’t settle for less. The Zone of Possible Agreement describes where both sides’ reservation points overlap, not the threshold itself. An aspirational or best-case outcome is a target, not the minimum you’re willing to accept.