In the game of PUT (P)and KEEP (K)each child was given nine dollars and, if they chose to put it back, six dollars was added to the nine and the two children shared the total pot of money. What is the dominant strategy?
A)(K, K)
B)(P, K)
C)(K, P)
D)(P, P)

Question

Quizplus · Accepted Answer

The dominant strategy is to keep the money, regardless of what the other player does. If both players keep the money, they each get $9. If one player puts the money back and the other keeps it, the player who kept the money gets $15 and the player who put the money back gets $0. If both players put the money back, they each get $7.50. Therefore, the dominant strategy is to keep the money.

In the Game of PUT (P)and KEEP (K)each Child Was