Business
Business, 05.03.2020 02:53, solivagantjn3010

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 high price, what is the best response of the customer? a. Swear off shopping forever b. Accept the high price c. Walk away from the deal d. Yell at the store owner

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Consider a sequential game between a shopkeeper and a haggling customer. The party who moves first c...

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