Negotiation Theory is the study of how individuals or groups reach agreements through discussion and compromise. It involves understanding the interests, needs, and goals of all parties involved. Key concepts include BATNA (Best Alternative to a Negotiated Agreement), which helps negotiators evaluate their options, and ZOPA (Zone of Possible Agreement), the range within which a deal can be made. The theory also explores different negotiation styles, such as competitive and collaborative approaches. Effective negotiation requires skills like active listening, empathy, and problem-solving. By applying these principles, negotiators can achieve mutually beneficial outcomes while minimizing conflict.