If Both Parties Have Perfect Information About All Economic Facts

question 35

Multiple Choice

If both parties have perfect information about all economic facts of the negotiation:

• A) the parties should reach an efficient agreement.
• B) the parties are sure to reach an equitable agreement.
• C) any mutually-beneficial profit split can be supported as an efficient outcome.
• D) a 50-50 profit split is the sole equilibrium outcome.
• E) a price offered by one party is most likely to fall beyond the zone of agreement.