Quote:
Originally Posted by dbtheo
Maybe the dealer did, maybe they didn't, but regardless a deal was struck no? My point is, if in fact a deal was made, buyers orders signed etc. Then effectively you gave your word. What would you say if the dealer called you back and said, "you know, I think we paid too much for your trade in" ?
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Just to be clear, you seem to be saying, regardless of asymmetric information, if you "promised" someone that you would do X, you should follow through with that promise, right? That's laudable (and impressive), but I don't think it is good practice 100% of the time (or any time when one person knows more than the other and/or there are incentives to lie or leave out information).
Putting in the appropriate variables of discussion:
Regardless of asymmetric information (maybe the dealer had better information, maybe they didn't, regardless, a deal was struck), if I signed an order form for a car which is in essence a promise to buy the car, I should buy the car regardless of whether or not I find that other people got a better price, because I gave my word.
I know we won't agree, but that seems inflexible. Taking this a bit off topic, and making it extreme to make my point:
I am selling my used car to a 16 year old kid for $15,000, knowing that some X component sometimes doesn't work well. I don't tell him that (asymmetric information), and he says he'll buy the car at that price, but needs to go to the bank to get cash. He comes back after talking to a mechanic about the experience, and the mechanic points out that there might be something wrong with the car. You think he should still buy the car for $15,000, after gathering more information, just because he gave his "word"?