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Use the Following Setup

Question 10

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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.
-​Would the customer be able to convince the shopkeeper that he would walk out if he receives a high price?


A) ​Yes,because walking out is most profitable move for the customer
B) No,because walking out is an unprofitable strategy for the customer
C) No,because walking out is not a credible threat
D) ​Both B&C

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