Jane is interested in buying a car from a used car dealer. Her maximum willingness to pay
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Jane is interested in buying a car from a used car dealer. Her maximum willingness to pay for the car is $14 (thousand). Bo, the dealer, is willing to sell the car as ong as he receives at least $8 (thousand). Thus, there is a potential surplus or gain from trade of $6 (thousand). Jane and the dealer bargain over the transaction price, p? If they cannot agree on a price, then the transaction does not occur, and neither party receives any surplus. instead, Bo can only get $6(thousand) elsewhere, then the price that maximizes the Nash product changes by thousand. (Enter your response rounded to one decimal place and include a minus sign if necessary)
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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