Suppose Jordan and Lee Are Trying to Decide What to Do

question 78

Multiple Choice

Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. Which of the following statements is true?

• A)Lee does not have a dominant strategy.
• B)For Lee, seeing a comedy is a dominant strategy.
• C)For Lee, seeing a documentary is a dominant strategy.
• D)Lee's dominant strategy depends on Jordan's choice.