Determine how much should home depot offer to pay

Assignment Help Econometrics

Reference no: EM13222894

Home Depot and Lowes can hire a gardener to maintain a common area for $110 for each of the three summer months (June, July, August). Each month that the common area is maintained, Home Depot expects to gain $100 more profit and Lowes $50 more profit.
Before June, Home Depot confronts Lowes over its share of the maintenance cost. Home Depot presents its offer. Lowes either accepts it for each of the three months, or rejects it and returns in late June with a counteroffer. In late June, Home Depot either accepts that counteroffer for each of the remaining two months, or rejects it and returns in late July with a counteroffer. In late July, Lowes either accepts that counteroffer for the remaining month, or rejects it and the bargaining game is over.
What percentage of the gains from trade should Home Depot offer? How much should Home Depot offer to pay? Should Lowes accept that initial offer?

Reference no: EM13222894

Questions Cloud

Compute the percentage ionization of salt : 0.5g KCl was dissolved in 100g water and the solution originally at 200C, froze at - 0.240C. Calculate the percentage ionization of salt. Kf per 1000g of water = 1.86K

How the bargaining rounds of alternating offers : S makes the first offer, with 4 bargaining rounds of alternating offers, and with S discounting 2% between each bargaining round. Compare bargaining outcomes when B discounts 10% between each bargaining round with B discounting only 1% between eac..

Explain what is the molality of zn in the solid solution : A particular sample of red brass consisting of 81.0% Cu and 19.0% Zn by mass has a density of 8780 kg/m^3. What is the molality of Zn in the solid solution?

Decribe how to prepare naoh solution : Decribe how to prepare 2.0 liters of a .20 M NaOH solution from 50%. (w/w) Naoh solution that has a density of 1.53 g/mL, and doing all measurements by volume, not mass.

Determine how much should home depot offer to pay : Home Depot and Lowes can hire a gardener to maintain a common area for $110 for each of the three summer months (June, July, August). Each month that the common area is maintained, Home Depot expects to gain $100 more profit and Lowes $50 more pro..

What does ethics have to do with recruiting : What does ethics have to do with recruiting and please define ethics and what is your opinin on selection processes around the world - what bias do you think you might have and is it important to take bias into consideration in your opinion

A carbon monoxide is a toxic pollutant found in our city air : Carbon Monoxide is a toxic pollutant found in our city air. On a particular day, the air contains 6.50mg of CO per 1.000X cubic meter of air. How many grams of CO are present in a room whose dimensions are 15.0 meters X 11.0 meters X 16.5 meters?

What effect did reducing the requirements to get disability : Between 1984 and 2001, the U.S. government made it much easier to get disability payments and the number of disabled people more than doubled from 3.8 million to 7.7 million. Once on disability, citizens then count as "out of the labor force."

Explain how many beta particles are emitted : Chlorine-36 is a B emitter, with a half-life of 3.0*10^5years. How many beta particles are emitted in 1.5 min from a 5.4mg sample Chlorine-36?

User Account

All Pages