Asked by Giselle Gradilla on Jul 17, 2024
Verified
If the shopkeeper goes first and quotes a low price,what is the best response of the customer?
A) Accept the low price happily
B) Walk away from the deal
C) Slam the storeowner's door on the way out
D) Laugh at the storeowner
Sequential Game
A type of game theory where players make decisions one after another, with each decision being made with knowledge of the previous actions.
Shopkeeper
An individual who owns or manages a small retail business or store.
Low Price
A cost that is significantly below the average or standard price in a market, often used to attract more consumers or gain market share.
- Assess the consequences of simultaneous and serial gameplay in the realm of negotiation strategies.
- Pinpoint the best tactical responses for a range of bargaining situations.
Verified Answer
MS
manpreet singhJul 21, 2024
Final Answer :
A
Explanation :
Since the customer values the item at $60 and the shopkeeper offers it for $20, accepting the low price maximizes the customer's surplus.
Learning Objectives
- Assess the consequences of simultaneous and serial gameplay in the realm of negotiation strategies.
- Pinpoint the best tactical responses for a range of bargaining situations.