Suppose Matt and Gabe Must Both Choose Between Two Jobs

question 33

Multiple Choice

Suppose Matt and Gabe must both choose between two jobs, a safe job that pays $250 per week and a risky job that pays $300 per week. The value of safety to each is $75 per week. Having more income than the other is worth $75 per week to each, and having less income than the other means a $75-per-week reduction in satisfaction. Having the same income as the other means no change in satisfaction. The payoff matrix below summarizes this situation. In this game, we can predict that choosing the risky job will:

• A)give Matt more satisfaction only if Gabe chooses the risky job.
• B)give Matt more satisfaction only if Gabe chooses the safe job.
• C)give Matt more satisfaction no matter which job Gabe chooses.
• D)never give Matt more satisfaction.

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