Tracy and Amy Are Playing a Game in Which Tracy

question 131

Multiple Choice

Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. If before Tracy chose, Amy could make a credible commitment to choose either the top or bottom branch when her turn came, then we would expect Tracy to get a payoff of ______ and Amy to get a payoff of ______.

• A)25; 225
• B)300; 200
• C)75; 150
• D)125; 125

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Definitions:

Pectoralis Major

A large muscle in the upper chest that helps in the movement of the shoulder and the arm.

Beneath

A preposition used to describe something located at a lower level or layer than something else.

Gastrocnemius

A major muscle located in the back part of the lower leg, involved in walking, running, and jumping.

Calf

The muscular back part of the lower leg between the knee and ankle, or a young bovine animal.