You are bargaining over the price of a new car. Suppose you, as the potential buyer, do not want to pay more than $20 comma 00020,000 for the new car, though it is actually worth $34 comma 00034,000 to you. The seller of the new car is willing to part with it for any price above $10 comma 00010,000 but would like to receive the highest price she can. Suppose your goal is to purchase the new car for $20 comma 00020,000. What could you do to obtain the car for $20 comma 00020,000? You could obtain the car for $20 comma 00020,000 if you A. increase your flexibility to make bids by taking out aa $14 comma 00014,000 loan. B. declare that you will never pay more than $20 comma 00020,000 for a car. C. sign a legally-binding document with your spouse that you'll pay her $10 comma 00010,000 if you spend more than $20 comma 00020,000 for a new car. D. purchase new tires for $1,000 that can only be used on new cars. E. make an enforceable bet with a third party for $16 comma 00016,000 that you will not spend more than $20 comma 00020,000 for a new car.
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You are bargaining over the price of a new car. Suppose you, as the potential buyer, do not want to...
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