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Use the Following Setup

Question 70

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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 shopkeeper goes first and quotes a low price,what is the best response of the customer?


A) ​Accept the low price happily
B) Walk away from the deal
C) Slam the storeowner's door on the way out
D) ​Laugh at the storeowner

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