Asked by Jusseth Hernandez on Jul 09, 2024
Verified
Looking ahead at how the customer is more likely to react,what price should the shopkeeper charge?
A) High price
B) Low price
C) Offer the good for free
D) A compromised price between the high and the low price
Sequential Game
A strategic scenario where players make decisions one after another, with later players having knowledge of the previous actions.
Shopkeeper
An individual who owns or manages a small retail store or establishment.
Haggling Customer
A shopper who negotiates the price of goods or services with the seller to obtain a lower price.
- Examine the results of concurrent and consecutive games within the context of negotiation processes.
- Ascertain the most effective strategy for diverse bargaining contexts.
Verified Answer
AS
Akash SharmaJul 11, 2024
Final Answer :
A
Explanation :
Since the customer values the item at $60, they are willing to pay up to that amount. By choosing a high price of $50, the shopkeeper ensures a sale, as the customer perceives the item as worth more than the asking price, leading to a successful transaction.
Learning Objectives
- Examine the results of concurrent and consecutive games within the context of negotiation processes.
- Ascertain the most effective strategy for diverse bargaining contexts.
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