Table 14-7 the Payoff Matrix Shown Above Assumes That Perfect Plants and Assumes

question 117

Multiple Choice

Table 14-7

The payoff matrix shown above assumes that Perfect Plants and Florabunda Florist must decide whether to offer same-day delivery for their products.The matrix shows how much profit each firm will earn if it does or does not offer same-day delivery.The amount of profit for one firm depends on whether the other firm offers same-day delivery.
-Refer to Table 14-7.Which of the following statements is true?

• A)Neither Perfect nor Florabunda have a dominant strategy.
• B)Perfect's dominant strategy is to offer same-day delivery; Florabunda's dominant strategy is to not offer same-day delivery.
• C)Florabunda's dominant strategy is to offer same-day delivery; Perfect's dominant strategy is to not offer same-day delivery.
• D)The dominant strategy for both firms is to offer same-day delivery.

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Definitions:

Anchoring And Adjustment

A cognitive bias in which an individual relies too heavily on an initial piece of information (anchor) to make subsequent judgments or decisions.

Availability

The state of being readily obtainable or accessible when needed or desired.

Projection

A psychological defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives onto someone else.

Representativeness

A cognitive heuristic in decision-making, where the similarity of objects or events is used to infer the probability of an event or the categorization of an object.