Consider a sequential game between a shopkeeper and a haggling customer. The party who moves first chooses either a high price ($50) or low price ($20) and the second mover either agrees to the price or walks away from the deal and neither party gets anything. Ignore costs and assume the customer values the item at $60.
If the shopkeeper goes first and quotes a low price, what is the best response of the customer?
(A) Walk away from the deal
(B) Accept the low price happily
(C) Laugh at the storeowner
(D) Slam the storeowner's door on the way out
+5
Answers (2)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Consider a sequential game between a shopkeeper and a haggling customer. The party who moves first chooses either a high price ($50) or low ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » Consider a sequential game between a shopkeeper and a haggling customer. The party who moves first chooses either a high price ($50) or low price ($20) and the second mover either agrees to the price or walks away from the deal and neither party