Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
If before Tracy chose, Amy could make a credible commitment to choose either the top or bottom branch when her turn came, then we would expect Tracy to get a payoff of ________ and Amy to get a payoff of ________.
A. 75; 150
B. 125; 125
C. 300; 200
D. 25; 225
Answer: C
You might also like to view...
Data show that in 2012, the college enrollment in Lithasia increased. In the same year, the sale of hotdogs in Lithasia also increased. The relationship between college enrollment and the sale of hotdogs exhibits:
A) a negative correlation. B) a zero correlation. C) a positive correlation. D) a causal relationshi
The supply curve for CDs shows the
A) minimum price that consumers are willing to pay if a given quantity of CDs is available. B) maximum price that consumers are willing to pay if a given quantity of CDs is available. C) maximum price that producers must be offered to get them to produce a given quantity of CDs. D) minimum price that producers must be offered to get them to produce a given quantity of CDs.
Other things being equal, corrective taxation is superior to regulation in the long run because it _____
a. gives the producer an incentive to find a way to reduce external costs b. the tax revenue can be used as compensation c. the tax revenue can be used on other parts of the budget d. is more burdensome on the producers of the externality
What was not true about the New England colonial economy?
a. Fishing was a major economic activity. b. It was a net importer of food and fiber. c. Shipping was a major economic activity. d. It was the most productive area in terms of agriculture.