Once You Have Offered a Concession,you Should Wait for the Counterparty

question 29

Multiple Choice

Once you have offered a concession,you should wait for the counterparty before making further concessions.This conclusion rests on which of the following assumptions?

• A) Your counterparty has a very low reservation point.
• B) Unilateral concessions decrease the size of the bargaining zone.
• C) Your counterparty's offer is not at their reservation point.
• D) Your counterparty's first offer is now the anchor point.

---

Definitions:

Purely Competitive

A market structure defined by a large number of sellers offering identical or very similar products, leading to a high level of competition and prices determined by supply and demand.

Purely Competitive

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price takers rather than price makers.

Imperfectly Competitive

Describes a market structure where firms have some degree of market power and can influence prices, unlike in perfect competition.

Purely Competitive

A market structure characterized by a large number of small firms, homogenous products, and easy entry and exit, leading to firms being price takers.