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Use the Following Setup

Question 34

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.
-​Suppose this customer is known to throw a fit and scare away other customers if charged high prices.If the shopkeeper moves first,he would ask for


A) ​A high price
B) A low price
C) A pony
D) ​All of the above

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