Suppose Jordan and Lee Are Trying to Decide What to Do

question 104

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. This game:

• A)is a prisoner's dilemma.
• B)is not a prisoner's dilemma.
• C)is an ultimatum bargaining game.
• D)has no Nash equilibrium.

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Definitions:

Heuristic

A mental shortcut that allows people to solve problems and make judgments quickly but can sometimes lead to errors in thinking.

Acrostic

A poem, word puzzle, or other composition in which certain letters in each line form a word or words.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.

Reward

A benefit or positive reinforcement given for a desired behavior, encouraging the behavior to occur again.