Each day, there are two strategies available to two bakers, Tim and Horton: sell cakes or sell pastries. They cannot do both in any one day. If both sell cakes, Tim will earn an additional $500 and Horton will lose $500. If Tim sells cakes and Horton sells pastries, Tim gains $100 and Horton loses $100. If Horton sells cakes and Tim sells pastries, Tim loses $400 and Horton gains $400. If both sell pastries, Tim gains $400 and Horton loses $400.
Each day, there are two strategies available to two bakers, Tim and Horton: sell cakes or sell pastries. They cannot do both in any one day. If both sell cakes, Tim will earn an additional $500 and Horton will lose $500. If Tim sells cakes and Horton sells pastries, Tim gains $100 and Horton loses $100. If Horton sells cakes and Tim sells pastries, Tim loses $400 and Horton gains $400. If both sell pastries, Tim gains $400 and Horton loses $400.
Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
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Question
Each day, there are two strategies available to two bakers, Tim and Horton: sell cakes or sell pastries. They cannot do both in any one day. |
If both sell cakes, Tim will earn an additional $500 and Horton will lose $500. |
If Tim sells cakes and Horton sells pastries, Tim gains $100 and Horton loses $100. |
If Horton sells cakes and Tim sells pastries, Tim loses $400 and Horton gains $400. |
If both sell pastries, Tim gains $400 and Horton loses $400. |
What will be the outcome if both bakers correctly use game theory? |
a.None of these outcomes is correct
b.Tim will gain $250, on average, each day
c.Tim will gain $300, on average, each day
d.Tim will gain $100, on average, each day
e.Tim will gain $200, on average, each day
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