Economics > QUESTIONS & ANSWERS > Module 4 Final Quiz: Economic Strategy and Negotiation, 100% CORRECT ANSWERS. (All)

Module 4 Final Quiz: Economic Strategy and Negotiation, 100% CORRECT ANSWERS.

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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. Question 3 1 / 1 pts 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 Question 4 1 / 1 pts 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 [Show More]

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