Asked by Angelique Cobilla on Jun 11, 2024
Verified
Suppose the shopkeeper is known to usher low bidders out of the store even if it means giving up the sale.If the customer moves first,he would
A) Offer the high price
B) Offer the low price
C) Get ushered out of the store
D) All of the above
Sequential Game
A type of game theory model where players make decisions one after another rather than simultaneously, allowing subsequent players to react to the earlier players' actions.
Shopkeeper
An individual who owns or manages a small retail store.
Low Bidders
Entities or individuals who offer the lowest price to win contracts or procurements, particularly in auctions or competitive bidding processes.
- Assess the consequences of authentic and inauthentic threats on negotiation results.
- Acknowledge the function of devotion in strategic negotiation settings.
Verified Answer
TB
Talasila Bharat ChowdaryJun 15, 2024
Final Answer :
A
Explanation :
Given the customer values the item at $60 and the shopkeeper is known to usher low bidders out, the customer, moving first, would offer the high price ($50) to ensure a successful transaction and avoid being ushered out. This choice maximizes the customer's utility by securing the item for less than their valuation of it.
Learning Objectives
- Assess the consequences of authentic and inauthentic threats on negotiation results.
- Acknowledge the function of devotion in strategic negotiation settings.