Lee and Cody are competitors.Each is considering whether to take aggressive action against the other or to cooperate.Cody can observe Lee's decision.Their decision tree can be diagrammed as follows:
Refer to the figure above.The equilibrium for this game is for Lee to choose _______ and for Cody to be _______ in response.
A)aggression;cooperative
B)aggression;aggressive
C)cooperation;cooperative
D)cooperation;aggressive

Question

Lee and Cody are competitors.Each is considering whether to take aggressive action against the other or to cooperate.Cody can observe Lee's decision.Their decision tree can be diagrammed as follows: 
Refer to the figure above.The equilibrium for this game is for Lee to choose _______ and for Cody to be _______ in response.
A)aggression;cooperative 
B)aggression;aggressive 
C)cooperation;cooperative 
D)cooperation;aggressive

Quizplus · Accepted Answer

Cody will choose aggression if Lee cooperates leaving Lee with a payoff of 0.Cody will cooperate if Lee is aggressive,giving Lee a payoff of 40.

Lee and Cody Are Competitors