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 either 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.

Looking ahead to how the shopkeeper is more likely to respond what price should the customer more likely to quote?

a.Low priceb.High pricec.A compromised price between the high and the lowd.Let the shopkeeper quote the price