This Figure Displays the Choices Being Made by Two Coffee

question 9

Multiple Choice

This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses) they will earn.
The game in the figure shown is a version of:

• A) the prisoner's dilemma.
• B) the first-mover advantage.
• C) a sequential game.
• D) a repeated game.

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Definitions:

Affective Events Theory

A psychological model that proposes that workplace events trigger emotional responses, which can influence behaviors and attitudes at work.

Interactional Fairness

The perception that the communication methods used during the process of decision making are respectful, transparent, and informative.

Distributive Unfairness

Perceived inequality in the distribution of resources or rewards.

Procedural Fairness

The perception that the processes used to make decisions and resolve disputes are fair.