William owns a car that he values at $5000. Jackson values the car at $7500. The negotiations between them for a potential trade are as follows: William offers a price to Jackson. If Jackson accepts, trade takes place at that price. If Jackson rejects, William keeps the car and Jackson buys a similar car which he values the same as William’s car from James for the price of $6000. What will the outcome be of the negotiation process? Group of answer choices William suggests Jackson pay $6125 and Jackson accepts the deal. William suggests Jackson pay $5000 and Jackson accepts the deal. William suggests Jackson pay $7500 and Jackson accepts the deal. William suggests Jackson pay $6000 and Jackson accepts the deal. William suggests Jackson pay $5000 and Jackson rejects the deal.

A Car manufacturer (C) needs to negotiate the price of a key input – the car battery – from the Battery Manufacturer (B). The negotiations proceed as follows. C makes an offer of a price p for the battery to B. B can then respond by Accepting or Rejecting the offer made. If B Accepts, the payoffs are (150 – p, p) for C and B, respectively. If B rejects, the payoffs are 0 for C and 50 for B. What is the outcome of the bargaining scenario?Group of answer choicesC offers a price of 0 and B AcceptsC offers a price of 50 and B AcceptsC offers a price of 1 and B AcceptsC offers a price of 150 and B AcceptsC offers a price of 150 and B rejects

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. Mark offers a price to Chrissie. If Chrissie agrees trade takes place at the agreed price. If Chrissie rejects the offer, negotiations end and each party receives a payoff of $0. What is the outcome of the negotiations?Group of answer choicesMark offers a price close to $1000 and Chrissie rejects the offerTrade takes place at a price of $1000.Trade takes place at a price of $500Trade takes place at a price of $0Chrissie rejects any offer Mark makes.

John is looking to sell his car and Mary is looking to buy it. John values the car at $2000 and Mary values it at $3000. John offers to sell it to Mary at a price of $3500. Which of the following is true: Group of answer choices Mary will not accept the offer and the total surplus will be $1000. None of the options are correct Mary will accept the offer but the total surplus will be less than $1000 Mary will not accept the offer and the total surplus will be 0. Mary will accept the offer and the total surplus will be $1000

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

A steel manufacturer (SM) and BHP are negotiating the price of iron ore. First, SM proposes a price p. Following this offer, BHP can accept or reject. If BHP accepts, SM gets 300 – p and BHP gets p. If BHP rejects the offer, SM gets 0 and BHP 100. What is the outcome of the negotiations?Group of answer choicesSM offers a price of 99 and BHP acceptsSM offers a price of 101 and BHP rejectsSM offers a price of 300 and BHP rejectsSM offers a price of 100 and BHP acceptsSM offers a price of 300 and BHP accepts