Suppose Jordan and Lee are trying to decide what to do on a Friday.Jordan would prefer to see a comedy while Lee would prefer to see a documentary.One documentary and one comedy are showing at the local cinema.The benefit they receive from seeing the films either together or separately are shown in the payoff matrix.Both Jordan and Lee know the information contained in the payoff matrix.They purchase their tickets simultaneously,ignorant of the other's choice.
Refer to the figure above.Suppose a timing element is added to the game,and that Jordan buys a ticket first.While Lee did not see which ticket Jordan bought,Lee does know the values in the payoff matrix and that Jordan has purchased first.Assuming that Jordan and Lee are both self-interested,Lee can infer:
A) that Jordan bought a ticket for the documentary.
B) that Jordan did not exploit the first-mover advantage.
C) that Jordan bought a ticket for the comedy.
D) that Jordan's threat to buy a ticket for the comedy is not credible.
Correct Answer:
Verified
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