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

question 99

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.
-Refer to the decision tree above.Suppose Dean promises Matthew that he will always select the upper branch at either Y or Z.Dean offers to sign a legally-binding contract that penalizes him if he fails to choose the upper branch at Y or Z.The penalty is $250.The outcome of the game is that

• A) Matthew picks Z and Dean pays the fine.
• B) Matthew picks Y and Dean does not pay the fine.
• C) Matthew picks Z and Dean does not pay the fine.
• D) Matthew picks Y and Dean pays the fine.
• E) Matthew picks Z and Dean selects the upper branch.

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