2. (Level A) Represent the following strategic interactions using payoff matrix/
ID: 1119114 • Letter: 2
Question
2. (Level A) Represent the following strategic interactions using payoff matrix/matrices (a) A couple (a she and a he) is going out for an evening. They have two options: watching a boxing match or going to an opera. Unfortunately his mobile phone runs out of battery. Unable to reach each other, each of them needs to go to one of the possible venues without knowing where his/her partner has gone. Spending the evening alone (whether at the boxing or the opera) is the worst outcome for both of them. Conditional on going out together, she prefers boxing to opera while he prefers opera to boxing. Make "she" Player 1 when writing the payoff matrix. (b) Three players are playing the following game: Each of them will put a penny (1 cent in the US) down simultaneously, each choosing between head and tail If players 1's and 2's penny are on the same side (i.e., both heads or both tails), then player 1 takes over player 2's penny. If player 1's and 2's penny are mismatched (i.e., one head, one tail), player 2 takes over player 1's penny. If player 3 chooses head, she gets the same payoff as player 1. If player 3 chooses tail, she gets the same payoff as player 2. Everyone prefers having more pennies to fewerExplanation / Answer
(a)
(b)
-1,1
He goes to Boxing He goes to opera SHe goes to Boxing 2,1 0,0 She goes to Opera 0,0 1,2Related Questions
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