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Use the Following Setup

Question 33

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.
-​If the customer moves first with a high price what is the best response of the shopkeeper


A) ​Accept the high price happily
B) Walk away from the deal
C) Throw the haggling customer out of your store
D) ​Laugh at the customer's face

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