Andrew wants to purchase Adam's car. Andrew is prepared to pay a maximum of $2,000. Adam is not willing to accept anything lower than $1,000. Suppose Andrew makes the first offer and there is an even number offers and counteroffers. If Andrew and Adam are equally patient:
A) Andrew enjoys a negotiating advantage because he moves first.
B) Adam enjoys a negotiating advantage because he is the seller.
C) Andrew enjoys a negotiating advantage because he makes the last counteroffer.
D) Adam enjoys a negotiating advantage because he makes the last counteroffer.
E) Andrew's advantage increases with the number of negotiating rounds.

Question

Quizplus · Accepted Answer

Adam enjoys a negotiating advantage because he makes the last counteroffer, allowing him to potentially secure a higher price within the acceptable range.

Andrew Wants to Purchase Adam's Car