Player 1 and Player 2 Are Playing a Game in Which

question 91

Multiple Choice

Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch. Suppose Player 1 and Player 2 enter into a binding agreement in which Player 1 agrees to pay Player 2 a fixed amount of money to get Player 2 to play Up when it is Player 2's turn. How much will Player 1 have to pay Player 2 to get Player 2 to play Up?

• A)$0
• B)at least $10.
• C)at least $20.
• D)at least $50.

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Definitions:

Looking Glass Self

A concept in social psychology suggesting that an individual's self-concept is influenced by how they believe others perceive them.

Generalized Other

A conception of the attitudes and expectations held in common by the members of the organized groups with whom one interacts.

Acting Reflexively

Responding or reacting automatically to stimuli without conscious thought.

Peripheral Membership

A form of association where individuals are marginally involved or partially included in a group or organization.