Asked by Nataliz Carrasco on Sep 24, 2024
Would the customer be able to convince the shopkeeper that he would walk out if he receives a high price?
A) Yes,because walking out is most profitable move for the customer
B) No,because walking out is an unprofitable strategy for the customer
C) No,because walking out is not a credible threat
D) Both B&C
Sequential Game
A strategic scenario in game theory where players make decisions one after another, with each decision affecting subsequent choices.
Shopkeeper
An individual who owns, operates, or manages a retail store, selling goods to the public.
High Price
A situation where the cost of a good or service is considerably above the average or expected price.
- Examine the effects of credible and non-credible threats on the results of negotiations.
- Evaluate the impact of outside circumstances on negotiation tactics.
Learning Objectives
- Examine the effects of credible and non-credible threats on the results of negotiations.
- Evaluate the impact of outside circumstances on negotiation tactics.