Suppose Jordan and Lee Are Trying to Decide What to Do

question 10

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 benefit they receive from seeing the films either together or separately are shown in the payoff matrix.Both Jordan and Lee know the information contained in the payoff matrix.They purchase their tickets simultaneously,ignorant of the other's choice. $\begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Jordan }\\\text {Lee}\begin{array}{|l|l|l|}\hline & {\text { Comedy }} & {\text { Documentary }} \\\hline \text { Comedy } & \begin{array}{l}\text { Lee: } 3 \\\text { Jordan: } 5\end{array} & \begin{array}{l}\text { Lee: } 1 \\\text { Jordan } 1\end{array} \\\hline \text { Documentory } & \text { Lee } 2 & \text { Lee: } 5 \\& \text { Jordan: } 2 & \text { Jordan 3 } \\\hline\end{array}\end{array}$
Refer to the figure above.Suppose a timing element is added to the game,and that Jordan buys a ticket first.While Lee did not see which ticket Jordan bought,Lee does know the values in the payoff matrix and that Jordan has purchased first.Assuming that Jordan and Lee are both self-interested,Lee can infer:

• A) that Jordan bought a ticket for the documentary.
• B) that Jordan did not exploit the first-mover advantage.
• C) that Jordan bought a ticket for the comedy.
• D) that Jordan's threat to buy a ticket for the comedy is not credible.

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Definitions:

Hippocampal Complex

A crucial part of the brain involved in memory formation, spatial navigation, and the consolidation of information from short-term to long-term memory.

Cerebellum

A part of the brain located at the back of the skull, responsible for coordinating and regulating muscular activity.

Episodic Memory

A durable memory category aimed at the recollection of individual instances, settings, and autobiographical experiences.

Declarative Memory

A component of long-term memory that stores facts and information, accessible to conscious thought.