Consider the Following Game in Which Sally Can Play T

question 5

Multiple Choice

Consider the following game in which Sally can play T or B and John chooses between L or R.Each player makes their choice simultaneously.If Sally chooses T and John chooses L, Sally gets a payoff of 5 and John has a payoff of 4.If Sally plays T and John R, Sally's payoff is 8 and John gets 3.If Sally Chooses B and John L, the payoffs are 3 to Sally and 2 to John.Finally, if Sally chooses B and John R, the payoffs are 7 to Sally and 0 to John.Which statement is true?

• A)The Nash equilibrium is (B,R); this is a prisoners' dilemma.
• B)The Nash equilibrium is (T,R); this is a prisoners' dilemma.
• C)The Nash equilibrium is (T,R); this is not dominant strategy equilibrium.
• D)The Nash equilibrium is (T,L); this is a dominant strategy equilibrium.
• E)None of the above.