Carla Has Just Written Out a Check for $18,999 to Pay

question 92

Multiple Choice

Carla has just written out a check for $18,999 to pay for her new car. Although the salesperson had initially accepted her check, she is now told that there was a mistake and that the final total should really be $19,250. Carla writes another check to cover the difference so that she can drive out with her new car. Carla has just fallen prey to a questionable sales practice called __________.

• A) lowballing
• B) bait and switch
• C) the dissonance game
• D) keep 'em guessing

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Definitions:

Robert Axelrod

A political scientist known for his work on the theory of cooperation and competition, including the development of the iterated prisoner's dilemma model.

Tit-for-tat

A strategy in game theory where a player responds to an opponent's action with equivalent action, promoting cooperation by rewarding cooperation and punishing defection.

Prisoner's Dilemma

A scenario in game theory that illustrates why individuals might not cooperate, even when it seems that doing so would be in their collective best interest.

Zero-sum Game

A situation in competitive theory where one party's gain is exactly balanced by the losses of others. In a zero-sum game, the total benefit to all players in the game, for every combination of strategies, always adds up to zero.