Miller, Nolan H.; Piankov, Nikita E.; Zeckhauser, Richard J. - In: Journal of Economics & Management Strategy 15 (2006) 3, pp. 789-819
"A price-setting seller faces a buyer with unknown reservation value. We show that if the buyer is sufficiently risk averse, the seller can benefit from employing a Possibly-Final Offer (PFO) strategy. In a PFO, if the buyer rejects the seller's initial offer the seller sometimes terminates the...