Reservasjonspris

Reservasjonspris, or reservation price, is the price at which a participant in a market considers engaging in a trade. For buyers it is their maximum willingness to pay, while for sellers it is the minimum price they are willing to accept. The concept captures the private threshold that each party has before they are willing to conclude a transaction.

In a negotiation or market setting, a trade becomes possible only when the buyer’s reservation price is at least as high as the seller’s reservation price. If the buyer’s maximum is lower than the seller’s minimum, no agreement forms. If a match exists, the actual transaction price will typically fall somewhere between the two reservation prices, depending on bargaining power, information, and negotiation strategies.

Reservation prices are shaped by several factors, including budget constraints, perceived value, alternatives, opportunity costs, risk, and time preferences. They can change over time as circumstances evolve, such as shifts in income, prices of substitutes, or changes in expectations.

In auctions, a related concept is the seller’s reserve price, which is the minimum price the seller is willing to accept. If bidding fails to reach this reserve, the item may not be sold. Conversely, in bilateral negotiations they function as privately held benchmarks that guide offers and counteroffers.

Limitations include the private and dynamic nature of reservation prices, making precise measurement difficult. Nevertheless, understanding reservation prices helps explain when trades occur and informs pricing, bargaining strategies, and auction design.