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 cither 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.$

Use Scenario $16-2$

Would the shopleeper be able to convince the customer that he would usher the customer out if he gets a low price?

a$.$ No$,$ because the shopkeeper has nothing to gain from losing the sale and the shopkeeper would gain more from accommodating the low price offer.

b$.$ No$,$ because the shopkeeper will never accommodate a low price.

C$.$ Yes, such threats are always credible.

d$.$ No$,$ because customers never believe threats from shopkeepers.