Use the Following Setup

question 77

Multiple Choice

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.
-​Suppose the shopkeeper is known to usher low bidders out of the store even if it means giving up the sale.If the customer moves first,he would

• A)​Offer the high price
• B)Offer the low price
• C)Get ushered out of the store
• D)​All of the above

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Definitions:

Yerkes-Dodson Law

A theory suggesting there is an optimal level of arousal for performance, and that too little or too much arousal can adversely affect task performance.

Physiological Arousal

The physical state of being alert, involving physiological changes like increased heart rate, muscle tension, and heightened senses.

Musical Performance

The act of presenting music in front of an audience, involving vocal or instrumental sounds.

Coherence

The quality of being logical, consistent and clear; often used to describe how well parts of a whole fit together meaningfully.