Use the Following Setup

question 10

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.
-​Would the customer be able to convince the shopkeeper that he would walk out if he receives a high price?

• A)​Yes,because walking out is most profitable move for the customer
• B)No,because walking out is an unprofitable strategy for the customer
• C)No,because walking out is not a credible threat
• D)​Both B&C

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Definitions:

Nicotine Withdrawal

Physical and psychological symptoms experienced by individuals when they stop using nicotine after a period of continual use.

Caffeine Intake

The consumption of caffeine, a stimulant, which is found in various foods and beverages, including coffee and tea.

Environmental Changes

Alterations or modifications to the natural environment, often resulting from human activities or climatic variations, that can have impact on living organisms.

Benzodiazepines

A class of drugs primarily used for treating anxiety, but also used in the treatment of seizures, insomnia, and alcohol withdrawal, known for their sedative effects.