This quotation strategy can effectively alter the surplus demand of the other party When the sellers offer is high buyers often reassess the sellers reserve prices causing the reasonable scope of pric

This quotation strategy can effectively alter the surplus demand of the other party. When the seller offers a high price, buyers often reassess the seller's reserve prices, causing the reasonable scope of price negotiations to shift in favor of the seller. Similarly, when the buyer offers a lower price, sellers tend to reassess the buyer's reserve price, leading to a shift in the reasonable scope of price negotiations in favor of the buyer.