How do different bargaining strategies influence the final purchase price of a new car? In particular, determine whether having better information, being willing to walk away from a deal, or being male affects the price that you receive. Each group will be assigned one make of car (e.g., Toyota); then the group should pick a particular model (e.g., a Toyota Corolla), with a fixed set of options that is identical for each member of the group. Each person should go into a dealership alone and bargain over the price of the car. Assign the following four types of bargainers:
1. Someone who's researched the dealer cost on the Internet
2. A patient bargainer who tells the salesperson he ‘‘needs time to think about it'' and returns to negotiate at a later date
3. A man who doesn't follow strategies 1 or 2
4. A woman who doesn't follow strategies 1 or 2
5. Another strategy?
When bargaining, please make sure to follow these rules:
1.The group should send no more than two people to a single dealership.
2. Do not disclose that you're doing this for a homework assignment.
3. Make sure to bargain for an identical car within the group, but each group should choose a different manufacturer (e.g., one group will buy a Toyota, one a Ford, one a Chevrolet, etc.). After you're finished, the group should write an assignment together. Compare and contrast the prices you were able to get. What were the differences in the final prices you paid versus the predictions of bargaining theory? How did your experience of bargaining differ across group members?