Suppose Jim and Celia,a Married Couple,are Trying to Decide What

question 113

Multiple Choice

Suppose Jim and Celia,a married couple,are trying to decide what to do on a Friday.Jim would prefer to see Rambo X while Celia would prefer to see Das Auto,an arty foreign film.Both films are showing at the local Megaplex.The joy they receive from the films and seeing them together,or separately,is shown in the payoff matrix.Both Jim and Celia know the information contained in the payoff matrix.They purchase their tickets simultaneously,ignorant of the other's choice.
-Refer to the payoff matrix above.Assuming Celia is self-interested and believes Jim is also self-interested,if Jim buys his ticket first,Celia will then

• A) go home.
• B) buy a ticket to Das Auto.
• C) flip a coin to determine which ticket to buy.
• D) buy a ticket to Rambo X.
• E) still not know which ticket to purchase.

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