(Table) Referring to the Payoff Matrix for Norm and Pete

question 125

Multiple Choice

(Table) Referring to the payoff matrix for Norm and Pete (with Norm's profit in plain text and Pete's profit in italics) , which statement BEST describes the scenario displayed in the table?
$\begin{array}{c} \quad \quad \quad \quad \quad \quad \quad \text { Pete's Pasta Dinners } \\\begin{array}{|l|l|ll|ll|}\hline & & {\text { High Price }} & &{\text { Price }} \\\hline \text {Norm's Noodle Bowls } & \text { High Price } & \$ 4,000 & \$ 4,500 & \$ 700 & \$ 3,500 \\\hline &\text { Low Price } & \$ 2,800 & \$ 500 & \$ 3,000 & \$ 3,700 \\\hline\end{array}\end{array}$

• A) Neither Norm nor Pete has a dominant strategy.
• B) Pete's dominant strategy is a high price.
• C) Norm's dominant strategy is a low price.
• D) The most likely outcome is that both charge a high price.

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Definitions:

Repeating Behavior

The act of performing the same action or sequence of actions multiple times, often seen in various neuropsychiatric conditions.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which leads to changes in voluntary behavior.

Compulsions

Actions or thoughts that a person is compelled to repeat due to an obsession, or in response to strict rules that have to be followed precisely.

Compulsion

An irresistible urge to behave in a certain way, especially against one's conscious wishes.