In the Above Decision Tree,Matthew Picks First and Dean Picks

question 21

Multiple Choice

In the above decision tree,Matthew picks first and Dean picks second.Matthew and Dean both know the payoffs to each choice for both themselves and each other.In this game,Matthew is the remote owner of an office that is managed by Dean,and Dean promises to always choose the upper branch at Y or Z in order to maximize Matthew's payoff.
-Refer to the above decision tree.Suppose that the society in which Matthew and Dean live is one in which some citizens behave dishonestly.What is the likely outcome of the game?

• A) 1000 for Matthew and 1000 for Dean.
• B) 500 for Matthew and 1500 for Dean.
• C) 1.5 million for Matthew and 1 million for Dean.
• D) 400 for Matthew and 1.5 million for Dean.
• E) The game will not be played.

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