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Module 4 Final Quiz: Economic Strategy and Negotiation (NEWEST-2022)

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Module 4 Final Quiz Due No due date Points 20 Questions 20 Time Limit 60 Minutes Attempt History Attempt Time Score LATEST Attempt 1 17 minutes 20 out of 20  Correct answers are hidden. Score for this quiz: 20 out of 20 Submitted May 2 at 16:23 This attempt took 17 minutes. Q 1 / 1 pts uestion 1 Doc and Brewster are in a negotiation over royalties. The negotiations proceed as follows. Doc can make an offer that is either high (H), medium (M) or low (L). Having received the offer, Brewster can either accept (A) or reject (R) any offer received. The payoffs are as follows. If an offer of H is accepted, the payoffs are (30, 8) to Doc and Brewster, respectively. If an offer of H is rejected, the payoffs are (18, 16). If an offer of M is made and accepted, the payoffs are (20, 8). If an M offer is rejected the payoffs are (5, 5). If a low offer is made and accepted the payoffs are (30, 5) and if an of L is rejected the payoffs are (10, 15). In the subgame perfect equilibrium outcome Brewster receives a payoff of . 8 Ques 1 / 1 pts tion 2 Chrissie owns a vintage guitar that she values at $0. Mark would like to buy the guitar and values it at $1000. The negotiations are as follows. Chrissie suggests a price to Mark. If Mark agrees trade takes place at the agreed price. If Mark rejects the offer, Mark buys an identical guitar from Angus for a price of $400 and Chrissie receives a payoff of $0. What is the outcome of the negotiations? Chrissie offers a price of $1000 and Mark accepts Chrissie offers a price of $400 and Mark accepts This study source was downloaded by 100000784424693 from CourseHero.com on 05-30-2021 08:14:57 GMT -05:00 https://www.coursehero.com/file/62715109/1pdf/ This study resource was shared via CourseHero.com 02/05/2020 Module 4 Final Quiz: Economic Strategy and Negotiation https://canvas.sydney.edu.au/courses/23912/quizzes/94190 2/9 Chrissie offers a price of $0 and Mark accepts Chrissie offers a price of $600 and Mark accepts. Chrissie offers a price of $500 and Mark rejects. Ques 1 / 1 pts tion 3 Chrissie owns a vintage guitar that she values at $0. Mark would like to buy the guitar and values it at $1000. The negotiations are as follows. Chrissie suggests a price to Mark. If Mark agrees trade takes place at the agreed price. If Mark rejects the offer, negotiations end and each party receives a payoff of $0. What is the outcome of the negotiations? Trade takes place at a price of $1000. Chrissie offers a price close to $1000 and Mark rejects the offer Mark rejects any offer Chrissie makes. Trade takes place at a price of $500 Trade takes place at a price of $0 Ques 1 / 1 pts tion 4 JJ and PW are in a negotiation that involves each party simultaneously choosing their strategy. JJ can either offer a high (H) or a low (L) price. PW can opt to Accept (A) or reject (R). If JJ opts for H and PW A, the payoffs are 6 to JJ and 4 to PW. If JJ opts for H and PW R, the payoffs are 4 to JJ and 6 to PW. If JJ goes L and PW A, the payoffs are 8 to JJ and 3 to PW. Finally, if JJ goes L and PW R, the payoffs are 7 and 5, to JJ and PW, respectively. Which of the following statements are true? The Nash equilibrium is (L, R) This negotiation resembles a prisoners’ dilemma. The Nash equilibrium is (H, A) JJ has a dominant strategy to set a high (H) price. The Nash equilibrium in the negotiation is (H, R). This study source was downloaded by 100000784424693 from CourseHero.com on 05-30-2021 08:14:57 GMT -05:00

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