Asked by Mateo Hoyos on Jun 11, 2024
Verified
If the shopkeeper goes first and quotes a high price,what is the best response of the customer?
A) Accept the high price
B) Yell at the store owner
C) Walk away from the deal
D) Swear off shopping forever
Sequential Game
A strategic game in which players make decisions in a specific order, with later decisions possibly depending on actions taken by those who moved earlier.
Shopkeeper
An individual who owns or manages a small retail business or shop.
Haggling Customer
A customer who negotiates with a seller in order to obtain a price reduction or better terms for a product or service.
- Analyze the outcomes of simultaneous and sequential games in negotiations.
- Identify the prime response tactics for numerous negotiating scenarios.
Verified Answer
ZA
Zoraida AyalaJun 16, 2024
Final Answer :
A
Explanation :
Since the customer values the item at $60, accepting the high price of $50 is rational because it is less than their valuation, resulting in a positive payoff for the customer.
Learning Objectives
- Analyze the outcomes of simultaneous and sequential games in negotiations.
- Identify the prime response tactics for numerous negotiating scenarios.