Alice and Betsy Are Playing a Game in Which Each

question 7

Multiple Choice

Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay.If both play the strategy leave, then each gets a payoff of $100.If both play the strategy stay, then each gets a payoff of $400.If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D.When is the outcome where both play leave a Nash equilibrium?

• A)Never, since $400 > $100.
• B)Whenever D < $400.
• C)When D > C and C > $100.
• D)When $100 > C and D > $400 but not when $400 > D.
• E)Whenever $100 > C.

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Definitions:

Rods

Rod-shaped photoreceptors that are sensitive only to the intensity of light.

Feature Detectors

Neurons in the sensory cortex that fire in response to specific features of sensory information such as lines or edges of objects.

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.

Iris

A muscular membrane whose dilation regulates the amount of light that enters the eye.