Suppose Jordan and Lee Are Trying to Decide What to Do

question 65

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)The lower-left cell is the only Nash equilibrium.
• B)Both the lower-left and upper right cells are Nash equilibria.
• C)Both the upper-left and lower-right cells are Nash equilibria.
• D)The upper-right cell is the only Nash equilibrium.

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Definitions:

Procedural Memory

The type of long-term memory responsible for knowing how to do things, also known as muscle memory.

Button-down Shirt

A garment with buttons down the front, typically with a collar and cuffs, often worn for formal or professional occasions.

Anterograde Amnesia

The inability to form new memories following the onset of an amnesia-causing event, while long-term memories from before the event may remain intact.

Retrograde Amnesia

Retrograde amnesia is a loss of memory-access to events that occurred or information that was learned before an injury or the onset of a disease.