Business Bluffing Reconsidered

1.Introduction Imagine that I walk into a car dealership and tell the salesperson that I absolutely cannot pay more than $10,000 for the car that I want. And imagine further she tells me that she absolutely cannot sell the car for less than $12,000. Assuming that neither one of us is telling the truth, we are bluffing about our reservation prices, the price above or below which we will no longer be willing to make the transaction. …

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