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Search once more and decide again upon knowing the price
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Assignment Help >> Business Economics

Jane wants to buy a beautiful doll as a gift for her sister's birthday. She knows that the same product is offered in different shops with prices of \$120, \$100, and \$80 with odds of one-third of finding each price. She just stopped at a shop and knows that the price is \$100. If the search cost is \$8 per time, what should she do?

Search once more and decide again upon knowing the price.

Accept the offer in hand.

She should toss a coin.

Insufficient information to determine.

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