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

question 124

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 Matthew will pick ________ because ________.

• A) Y;it provides higher payoffs than Z
• B) Y;he knows that Dean will pick the upper branch
• C) Y;he knows that Dean will pick the lower branch
• D) Z;he knows that Dean will pick the upper branch
• E) Z;he knows that Dean will pick the lower branch

---

Definitions:

Educational Services

Institutions and activities aimed at providing instruction and training in a wide range of subjects and skills.

Transportation and Warehousing

The industry sector focused on the storage, transportation, and distribution of goods.

Unionized Employees

Workers who are members of a labor union, which represents their interests in negotiations with employers.

Nonunionized Employees

Workers who are not members of a labor union and do not enjoy the collective bargaining and representation benefits provided by union membership.