Scenario: Tom and Harry Are Participating in a Game in Which

question 68

Multiple Choice

Scenario: Tom and Harry are participating in a game in which the participants are divided into groups of two. Tom and Harry have been put in the same group. In each round of the game, Tom will be given an item. Tom can either give it to Harry or pass it on to the next team. If he decides to pass it on to the next team, neither of them will get the prize. If he gives it to Harry, Harry can either pass it on to the next team or sell it himself. If he passes it on to the next team, each of them will get $100. However, if he decides to sell it, he will get an amount higher than $100 and Tom will get nothing.
-Refer to the scenario above.Tom should use ________ to play this game.

• A) backward induction
• B) forward induction
• C) mixed strategies
• D) his dominant strategy

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Definitions:

Election Sign

A physical marker or poster designed to promote or indicate support for a particular candidate or political position during electoral campaigns.

Politician

An individual who is actively involved in politics, especially one holding or seeking an elected office.

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding two or more conflicting beliefs, leading to an alteration in beliefs or behaviors to reduce discomfort.

Dissonance

A psychological conflict resulting from incongruent beliefs and attitudes held simultaneously, often leading to an alteration in one of the attitudes to reduce the conflict.