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Lee and Cody Are Competitors

question 106

Multiple Choice

Lee and Cody are competitors.Each is considering whether to take aggressive action against the other or to cooperate.Cody can observe Lee's decision.Their decision tree can be diagrammed as follows: Lee and Cody are competitors.Each is considering whether to take aggressive action against the other or to cooperate.Cody can observe Lee's decision.Their decision tree can be diagrammed as follows:   Refer to the figure above.Suppose Lee and Cody enter into a binding non-aggression agreement.As part of that agreement they negotiate a fine that Cody would have to pay to Lee if Cody responded to Lee's cooperative choice with aggression.For that fine to be effective,it must be A)  less than 15. B)  greater than 15. C)  equal to 40. D)  equal to 25.
Refer to the figure above.Suppose Lee and Cody enter into a binding non-aggression agreement.As part of that agreement they negotiate a fine that Cody would have to pay to Lee if Cody responded to Lee's cooperative choice with aggression.For that fine to be effective,it must be


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