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

question 112

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.The outcome of this game is ________ for Matthew and ________ for Dean,because ________.

• A) 1000;1000;the two individuals want to have the same payoff
• B) 500;1500;Matthew cannot trust Dean to choose the upper branch
• C) 1.5 million;1 million;Matthew can trust Dean to choose the upper branch
• D) 400;1.5 million;Dean wants to take advantage of Matthew
• E) 0;0;the game will not be played

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Definitions:

Influence Peddlers

Individuals or entities that attempt to use their influence or connections to sway decisions, often in a political or commercial context.

Deliberate Inventions

Innovations or solutions that are intentionally created to solve a specific problem or meet a particular need.

Managerial

Pertaining to the activities, responsibilities, and skills required for managing organizations or parts of organizations.

Communications

The process of transmitting, receiving, and understanding information or messages between entities.