Glossary · Term

accept threshold

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Definition

Plain language

The lowest price a seller will secretly say yes to.

As stated in the literature

The hidden reservation price held by each simulated counterparty; agents must locate it by probing with bids, and the oracle policy that reads it directly closes deals in ~1.0 offers versus a field median of ~30.

Also called: accept thresholds, acceptance boundary

Why it matters: It turns negotiation into a search problem, revealing whether an agent probes efficiently or wastes dozens of offers groping for a price it could have narrowed down in a few.

For example, a club will secretly settle for £8 million for a player, so a bid of £7.9 million gets rejected and a bid of £8.1 million is instantly accepted, but the buyer never sees the number.

Heard on the show

“It bids each seller's exact accept threshold and closes on the first offer.”
Episode 245 — Fifteen Models Ran Football Clubs for Twenty Years, and Size Didn't Decide It

Mentioned in 1 episode

  1. 245
    Fifteen Models Ran Football Clubs for Twenty Years, and Size Didn't Decide It

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