Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 14, Problem 3.4P
(a)
To determine
Pay-off matrix.
(b)
To determine
Dominant strategy
(c)
To determine
Decision.
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Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by the police about their involvement in the crime. The police tell them each that if they confess and turn the other person in, they will receive a lighter sentence. If they both confess, they will each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive 35 years. The table below represents the choices available to Jane and Bill. If Jane trusts Bill to stay silent, what should she do? If Jane thinks that Bill will confess, what should she do? Does Jane have a dominant strategy? A = Confess; B = Stay Silent. (Each results entry lists Janes sentence first (in years), and Bill's sentence second.) A A (30,30) A B (35,15) B A (15, 35) B B (20, 20)
Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and
questioned by the police about their involvement in the crime. The police tell them each that if they
confess and turn the other person in, they will receive a lighter sentence. If they both confess, they
will be each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence.
If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive
35 years. Table 10.7 e below represents the choices available to Jane and Bill. A = Confess; B = Stay
Silent. (Each results entry lists Bill's sentence fırst (in years), and Jane's sentence second). Answer the
following:
Jane
A
B
A
(30, 30)
(15, 35)
Bill
(35, 15)
(20, 20)
Table 10.7
a) If Jane trusts Bill to stay silent, what should she do?
b) If Jane thinks that Bill will confess, what should she do?
c) Does Jane have a dominant strategy? Does Bill have a dominant strategy? Justify your answer.
Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by the police about their involvement in the crime. The police tell them each that if they confess and turn the other person in, they will receive a lighter sentence. If they both confess, they will be each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive 35 years. The table below represents the choices available to Jane and Bill.
If Jane trusts Bill to stay silent, what should she do? A = Confess; B = Stay Silent (Each results entry lists Janes's sentence first (in years), and Bill's sentence second.)
Jane
A
B
Bill
A
(30, 30)
(15, 35)
B
(35, 15)
(20, 20)
Chapter 14 Solutions
Principles of Economics (12th Edition)
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Similar questions
- Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by the police about their involvement in the crime. The police tell them each that if they confess and turn the other person in, they will receive a lighter sentence. If they both confess, they will be each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive 35 years. Table 10.7 below represents the choices available to Jane and Bill. If Jane trusts Bill to stay silent, what should she do? If Jane thinks that Bill will confess, what should she do? Does Jane have a dominant strategy? Does Bill have a dominant strategy? A = Confess; B = Stay Silent. (Each results entry lists Jane’s sentence first (in years), and Bill's sentence second.)arrow_forwardBob and Tom are two criminals who have been arrested for burglary. The police put Tom and Bob in separate cells. They offer to let Bob go free if he confesses to the crime and testifies against Tom. Bob also is told that he will serve a 15-year sentence if he remains silent while Tom confesses. If he confesses and Tom also confesses, they will each serve a 10-year sentence. Separately, the police make the same offer to Tom. Assume that if Bob and Tom both remain silent, the police only have enough evidence to convict them of a lesser crime and they will serve 3-year sentences. a. Use this information to complete the matrix below. Tom Don't confess Confess Don't confess Bob serves years Tom serves years Bob serves years Tom serves years Bob- Confess Bob serves years Tom serves years Bob serves years Tom serves yearsarrow_forwardThe police have apprehended two suspects for a crime. Since they don't have enough information to convict, they decide to extract a confession from them by putting each suspect in a separate room and offering them the following deal: "If you Confess and your partner doesn't, I can promise you a reduced (one-year) sentence, and on the basis of your confession, your partner will get 10 years. "If you both Confess, you will each get a three-year sentence." Each suspect also knows that if neither of them confesses, the lack of evidence will cause them to be tried for a lesser crime for which they will receive two-year sentences. A player strategy in this game would be for: O these are all possible strategies O stay silent if the other player stays silent O confess no matter what the other player does confess if the other player confessesarrow_forward
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