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

question 64

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 all citizens have been strongly conditioned to behave honestly,such that Dean would be willing to pay 600,000 to avoid the feelings of guilt that would accompany dishonest behaviour.One can predict that Dean will pick the ________ branch at Y or Z,because ________.

• A) lower;it provides a higher payoff to Dean than the upper branch
• B) lower;it provides a higher payoff to Matthew than the upper branch
• C) upper;it provides a higher payoff to Dean than the lower branch
• D) upper;it provides a lower payoff to Dean that the lower branch
• E) upper;it provides a higher payoff to Matthew than the lower branch

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