Scenario: Alex Puts $100 on the Table

question 79

Multiple Choice

Scenario: Alex puts $100 on the table. Bob chooses either to take $51 for himself and $49 for Clare or pass. If Bob passes, then Alex adds another $2 and Clare chooses either to take $52 for herself and $50 for Bob or pass. If Clare passes, then Alex adds another $2 and Bob chooses either to take $53 for himself and $51 for Clare or pass, and so on. In other words, a player chooses either to take $2 more for himself/herself or pass, and, every time a player passes, Alex adds another $2. The game ends if $200 is on the table or either Bob or Clare chooses not to pass before that. If the amount on the table reached $200, then Bob and Clare get $99.99 each (Alex takes two pennies back) . The figure below shows the extensive form of this game. Bob's payoff is written first and Clare's second.

-Refer to the scenario above.Suppose that,if the game reached the end with $200 on the table,Bob and Clare get $100 each instead of $99.99.Then which of the following could happen in an equilibrium?

• A) Bob passes until $198 is on the table and Clare ends the game.
• B) Bob passes in his first turn and Clare ends the game in her first turn.
• C) Bob ends the game in his first turn.
• D) Bob ends the game when $150 is on the table.

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Definitions:

Tracheids

Long, thin cells in plants that facilitate the transport of water and minerals upwards from the roots.

Vessel Elements

Components of the xylem tissue in plants, which are elongated cells that contribute to the conduction of water and minerals.

Xylem

The vascular tissue in plants responsible for the transport of water and nutrients from the roots to the rest of the plant.