Which of the following is an example of the use of outside options in bargaining?
A)A defense attorney negotiates a plea deal for her client with a prosecutor.
B)A shopper asks a manager for a discount if he pays in cash.
C)A wholesaler gives a discount to a retail outlet owner who does repeated business there.
D)A college graduate shows a potential employer his salary offer from another firm.

Question

Quizplus · Accepted Answer

In this scenario, the college graduate is using the offer from another firm as an outside option to negotiate a better salary with the potential employer. The other options (A, B, and C) do not involve using an outside option as a bargaining tactic.

Which of the Following Is an Example of the Use