Refer to the scenario above. If the players have to pay a fairness penalty of $7,000, ________
A) this game will no longer have a Nash equilibrium
B) this game will have two Nash equilibria
C) Nash equilibrium will occur when Mathew chooses bad and Peter chooses good
D) Nash equilibrium will occur when Mathew chooses good and Peter chooses bad
B
You might also like to view...
The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve. b. is only a problem in developing countries. c. will be solved as technology advances. d. will always be with us.
Briefly discuss the findings of the U.S. Department of Commerce in 2018 that the Chinese government had engaged in unfair policies and practices involving U.S. intellectual property.
What will be an ideal response?
Suppose the consumption equation is represented by the following: C = 250 + .75YD. Given this information, the marginal propensity to save is
A) .25. B) .7. C) 1. D) 4. E) none of the above
In Figure 5.3, what output would a perfect competitor produce? 
A. Q1 B. Q2 C. Q3 D. 0