Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.
-Games with structures like Game 9 above have been used to describe:
A)bank runs.
B)collusion in Sumo wrestling.
C)dominant strategy equilibria.
D)the decision to hire a lawyer.

Question

Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. 
-Games with structures like Game 9 above have been used to describe:
A)bank runs. 
B)collusion in Sumo wrestling. 
C)dominant strategy equilibria. 
D)the decision to hire a lawyer.

Quizplus · Accepted Answer

Game 9 describes a situation of coordination failure, where both players have a dominant strategy to withdraw their money from the bank, even though it is not in their best interest to do so. This is similar to a bank run, where multiple individuals withdraw their money from a bank as a result of a panic or loss of confidence in the bank's solvency. Therefore, the best choice is A.

Reference: in the Following Games, All Payoffs Are Listed with the Row