Asked by Ramond Foster on Jul 17, 2024
Verified
Suppose that Firm A cheats,and B does not. What is A's payoff from cheating?
A) 0
B) 50
C) -10
D) 25
Normal Form Game
A representation of a game in strategic form, showing players, strategies, and payoffs, useful in the analysis of strategic interactions.
Cheating
The act of being dishonest or unfair in order to gain an advantage, often violating rules or norms.
Payoff
The return or outcome received from an investment or decision, which can be in the form of profit, satisfaction, or achievement of goals.
- Evaluate the mechanisms of strategy in games characterized by both repetitive and simultaneous actions.
Verified Answer
BB
Brandy BrockJul 20, 2024
Final Answer :
B
Explanation :
If A cheats and B does not, A's price will be lower than B's price, resulting in customers flocking to A's store, resulting in a 50 payoff for A.
Learning Objectives
- Evaluate the mechanisms of strategy in games characterized by both repetitive and simultaneous actions.