P-TV and QRS-TV Are Trying to Decide Whether to Air

question 14

Multiple Choice

P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. In the equilibrium of this game:

• A)both stations will air reality shows.
• B)both stations will air sitcoms.
• C)QRS-TV will air a sitcom and P-TV will air a reality show.
• D)QRS-TV will air a reality show and P-TV will air a sitcom.

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Definitions:

Threshold

The point at which a stimulus is strong enough to be detected or to cause a response.

Difference Threshold

The smallest detectable difference between two stimuli or the minimum change in a stimulus that can be correctly perceived as differing from a reference stimulus.

Just Noticeable Difference

The minimum difference in stimulus intensity that a specific sense (like sight, hearing, taste, touch, or smell) can detect.

Optic Nerve

The nerve that transmits sensory information from the eye to the brain.