The table above shows the payoff matrix offered to two suspected criminals, Bonnie and Clyde. The payoffs are the years they will spend in prison. The suspected criminals are not allowed to communicate
Given the information in the payoff matrix, the Nash equilibrium is that Bonnie ________ and Clyde ________. A) confesses; denies
B) confesses; confesses
C) denies; denies
D) denies; confesses
E) denies; either confess or denies, either outcome is consistent with the Nash equilibrium.
B
Economics
You might also like to view...
To ensure all students are protected from getting the flu this year, your school offers free flu shots. What type of externality exists in this example?
A) negative consumption externality B) positive consumption externality C) positive production externality D) negative production externality E) neutral externality
Economics
Refer to Figure 8.1. At the profit-maximizing level of output, total profit is
A) -$120. B) $0. C) $432. D) $600. E) $603.
Economics