use the following setup
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)Accept the high price
B)Yell at the store owner
C)Walk away from the deal
D)Swear off shopping forever

Question

use the following setup
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)​Accept the high price
B)Yell at the store owner
C)Walk away from the deal
D)​Swear off shopping forever

Quizplus · Accepted Answer

The Answer is A

Use the Following Setup