Bargaining, and auctions

Describe the differences between distributive bargaining and integrative bargaining.

Select the three factors that cause bargaining failure.Question 10Select more than one:a.Negative externalitiesb.Challenges unbundling issues c.Commitments that are not credible d.Information asymmetries

Consider the bargain between Cricket Australia (CA) and the players’ union. The two parties are in a negotiation over the players’ wage w, which proceeds as follows: the union makes a wage offer of w to CA; following this, CA sees the offer and can accept or reject. If CA accepts the offer, CA gets a payoff of 200 – w, where w is the wages paid to the players and union gets a payoff of w. If CA rejects the wage offer, each party gets 0.What is the outcome of the bargaining game?Group of answer choicesThe union offers CA pays a wage w = 10 and CA rejects.The union offers CA pays a wage w = 200 and CA accepts.The union offers CA pays a wage w = 0 and CA accepts.The union offers that CA pays a wage w = 100 and CA accepts.None of the above

Consider a negotiation between a car buyer and a used-car salesperson. The car salesperson values a car at $10,000 and the buyer values it at $12,000. Suppose the buyer moves first and offers a price p. The car salesperson can accept or reject the offer. If the offer is rejected the buyer can buy an identical car from a different dealer for a price of $5000. In the subgame perfect equilibrium: Group of answer choices Buyer offers $10,000 and the car salesperson rejects Buyer offers $10,000 and the car salesperson accepts Buyer offers $12,000 and the car salesperson rejects. Buyer offers $5000 and the car salesperson rejects Buyer offers $5000 and the car salesperson accepts Buyer offers $12,000 and the car salesperson accepts

Alex and Peter are hoping to negotiate the sale of the wardrobes. Considering the following: Alex's target point is $300, and his resistance point is $94.Peter's target point is $120, and his resistance point is $180.What is the bargaining zone? Question 2Select one:$180 (The difference between Peter and Alex's target points)$206 (Alex's target point minus Alex's resistance point)$86 (The difference between Peter and Alex's resistance points)$300 (Alex's target point)