8. Repeated Games and Bargaining

Reservation Values And Outside Options — Quiz

Test your understanding of reservation values and outside options with 5 practice questions.

Practice Questions

Question 1

What is a reservation value in bargaining?

Question 2

Which situation is an outside option?

Question 3

If a player's reservation value is $8$, what is the minimum payoff the player will accept?

Question 4

A player can get $6$ from an outside option. A bargaining offer gives the player $4$. What should the player do?

Question 5

How does a stronger outside option affect a player's bargaining position?