Assume the Table Below Represents Two Contestants on a Game

question 6

Multiple Choice

Assume the table below represents two contestants on a game show who are allowed to push a blue button or a red button in the final round to determine the prize money they will each receive.What will be the result if both players follow their dominant strategies? Drake
$\begin{array}{cc|c|c|}&&blue&red\\\hline &blue&\text { D: } \$ 100,000 & \text { D: } \$ 200,000 \\&&\text { D: } \$ 200,000 & \text { P: } \$ 10,000 \\\hline peter&red& \text { D: } \$ 10,000 & \text { D: } \$ 15,000 \\&&\text { P: } \$ 150,000 & \text { P: } \$ 12,000 \\\hline\end{array}$

• A)Drake wins $100,000 and Peter wins $75,000.
• B)Drake wins $200,000 and Peter wins $10,000.
• C)Drake wins $10,000 and Peter wins $150,000.
• D)Drake wins $15,000 and Peter wins $12,000.
• E)There is no dominant strategy for this game.

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Definitions:

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