Player a and Player B Are Playing a Game Involving

question 145

Multiple Choice

Player A and Player B are playing a game involving several rounds of a prisoner's dilemma where their choices are to "cooperate" or "defect." After each round ends, one player roles a six-sided die. If the die lands on 6, the game ends; however, if the die lands on any other number, the game continues and players play another round. Prior to the game starting, the players formulate a strategy that specifies what they will do in every possible round they might find themselves in. If Player A is playing the tit-for-tat strategy, in the:

• A) first round, Player A will definitely choose defect.
• B) second round, Player A will definitely choose defect.
• C) second round, Player A will choose whatever Player B chose in the first round.
• D) second round, Player A will definitely choose cooperate.
• E) third round, Player A will definitely choose cooperate.

---

Definitions:

APR

Annual Percentage Rate, a measure used to compare the annual cost of borrowing or the annual yield from an investment, including interest and fees.

Quoted Loan Rates

The interest rates that banks or other lenders advertise as available to borrowers.

Competitive

Characterized by the existence of competition; striving to gain or win something by defeating or establishing superiority over others.