Alice chooses action a or action b, and her choice is observed by Bob. If Alice chooses action a, then Alice receives a payoff of 5 and Bob receives a payoff of 4. If Alice chooses action b, then Bob chooses action c or action d. If Bob chooses action c, then Alice receives a payoff of 10 and Bob receives a payoff of 5. If Bob chooses action d, then Alice receives a payoff of 0 and Bob receives a payoff of 6. Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.) Alice's backward induction payoff is 10. This is a prisoners' dilemma. This game has imperfect information. Alice's backward induction payoff is 0
Alice chooses action a or action b, and her choice is observed by Bob. If Alice chooses action a, then Alice receives a payoff of 5 and Bob receives a payoff of 4. If Alice chooses action b, then Bob chooses action c or action d. If Bob chooses action c, then Alice receives a payoff of 10 and Bob receives a payoff of 5. If Bob chooses action d, then Alice receives a payoff of 0 and Bob receives a payoff of 6. Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.) Alice's backward induction payoff is 10. This is a prisoners' dilemma. This game has imperfect information. Alice's backward induction payoff is 0
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter15: Strategic Games
Section: Chapter Questions
Problem 2MC
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Alice chooses action a or action b, and her choice is observed by Bob. If Alice chooses action a, then Alice receives a payoff of 5 and Bob receives a payoff of 4. If Alice chooses action b, then Bob chooses action c or action d. If Bob chooses action c, then Alice receives a payoff of 10 and Bob receives a payoff of 5. If Bob chooses action d, then Alice receives a payoff of 0 and Bob receives a payoff of 6.
Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.)
Alice's backward induction payoff is 10.
This is a prisoners' dilemma.
This game has imperfect information.
Alice's backward induction payoff is 0.
This is a promise game.
Bob's backward induction payoff is 4.
Bob's backward induction payoff is 6.
This is a threat game.
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