-The Table Above Shows the Payoff Matrix Offered to Two

question 134

Multiple Choice

-The table above shows the payoff matrix offered to two suspected criminals,Bonnie and Clyde.The payoffs are the years they will spend in prison.The suspected criminals are not allowed to communicate.Given the information in the payoff matrix,the Nash equilibrium is

• A) Bonnie confesses only if she thinks Clyde denies committing the crime.
• B) Clyde confesses only if he thinks Bonnie denies committing the crime.
• C) both Bonnie and Clyde confess to the crime.
• D) both Bonnie and Clyde deny committing the crime.
• E) Clyde confesses and Bonnie might either confess or not confess, either outcome is consistent with the Nash equilibrium.

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Definitions:

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