MULTIPLE CHOICE (identify the one best answer below and explain your reasoning for each option): If James is the leader in the game then: (hint: you can draw the game tree to see it better)a. There are two equilibrium outcomes that coincide with the Nash equilibria.b. The unique equilibrium outcome is James playing Rooster and Buzz playing Chicken.c. The equilibrium outcome is the same as if Buzz were the leader.d. All of the above.e. None of the above 5) (KEY QUESTION) In the movie Rebel Without a Cause, James Dean and buzLfavours of sixteen year old Judy. Buzz's gang members steal two cars. The group of teenagers gathers on aLos Angeles lookout, with a cliff that drops down to the Pacific Ocean. James and Buzz are to drive the stolencars toward the cliff. The first person to jump from his car is declared the chicken (which is bad). The lastperson to jump is the hero (which is good), capturing Judy's affection and the gang's respect. The driverlesscars continue over the cliff and plunge to the rocks at its base.Each driver can make two possible actions. Jump when he feels endangered (be a chicken) or jump AFTERthe other driver jumps (be a rooster). Assuming that both feel endangered at the same moment, the followingmatrix represents the payoffs for James and Buzz for each choice of strategy.BuzzRooster-10, 20-50,-50Chicken3,320,-10JamesChickenRooster

The matrix shows the choices of Buzz:

Answered: 5) (KEY QUESTION) In the movie Rebel…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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MULTIPLE CHOICE (identify the one best answer below and explain your reasoning for each option): If James is the leader in the game then: (hint: you can draw the game tree to see it better)
a. There are two equilibrium outcomes that coincide with the Nash equilibria.
b. The unique equilibrium outcome is James playing Rooster and Buzz playing Chicken.
c. The equilibrium outcome is the same as if Buzz were the leader.
d. All of the above.
e. None of the above

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