This Regret Matrix Gives Potential Dollar Values in Thousands for Strategies

question 93

Multiple Choice

This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake.If Al chooses S3, what kind of strategy is he using? CA1 CA2 CA3
S1 3 15 9
S2 12 10 12
S3 8 9 17
S4 13 16 3

• A)minimax
• B)maximin
• C)maximax
• D)minimin

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Definitions:

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors influence the economic decisions of individuals and institutions.

Neoclassical Economics

An economic thought framework that emphasizes the determination of goods, outputs, and income distributions in markets through supply and demand.

Behavioral Economics

A branch of economics that examines the impact of psychological, cognitive, emotional, cultural, and social influences on the economic choices made by individuals and institutions.

Hedonic Treadmill

The observed tendency of humans to quickly return to a relatively stable level of happiness despite major positive or negative events or life changes.