Asked by Grant Evenson on Sep 24, 2024
Verified
The disagreement value in a nonstrategic game is most closely associated with
A) opportunity costs
B) fixed costs
C) variable costs
D) accounting costs
Disagreement Value
The worth or specific outcome that parties in a negotiation anticipate they could receive if they fail to come to an agreement and decide to pursue other options.
Opportunity Costs
The cost of what is foregone by choosing one alternative over another, representing the benefits that could have been received from the next best alternative.
- Identify the significance of disagreement value in bargaining.
Verified Answer
ÓA
Óscar Aguado Simón2 days ago
Final Answer :
A
Explanation :
The disagreement value in a nonstrategic game represents the minimum value that a player would accept in order to agree to play the game. It reflects the player's opportunity cost of playing the game, which is the value of the player's next best alternative. Therefore, the disagreement value is most closely associated with opportunity costs.
Learning Objectives
- Identify the significance of disagreement value in bargaining.