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.
-In the strategic view of bargaining the outcome depends on
A)Who makes the first move
B)Who can commit to a position
C)Whether or not the other party can make a countermove
D)All of the above

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.
-​In the strategic view of bargaining the outcome depends on
A)​Who makes the first move
B)Who can commit to a position
C)Whether or not the other party can make a countermove
D)​All of the above

Quizplus · Accepted Answer

The outcome of the game depends on all the factors listed in choices A, B, and C. The first mover has an advantage in setting the initial price, but the second mover has the ability to either agree or walk away from the deal, which can influence the outcome. Additionally, the ability of each party to commit to a particular position can be a factor in the bargaining process. Therefore, the best choice is D.

Use the Following Setup