Final answer:
Marvin's assumption relies on the contrast principle, but he must be wary of potential undisclosed issues due to imperfect information. Reputable dealers sometimes charge more to cover the cost of ensuring the car's reliability, which can justify a higher price than a superficial discount.
Step-by-step explanation:
The assumption that Marvin is getting a good deal on a car because it's marked down from the sticker price relies on the contrast principle. When Marvin is viewing the car, he's considering the reduced price in contrast to the original, which makes the deal seem better. However, Marvin must be cautious as he is operating in a world of imperfect information, where sellers may know more about the car's issues than he does and could conceal them to maintain a higher selling price. Consequently, cars are sometimes more expensive at reputable dealerships because those dealers invest in ensuring their cars are reliable, maintaining a trustworthy reputation that could justify a higher price.