Questions
BUSS1040 (ND) Quiz 3
Single choice
Consider the following game. Terry and Kerry are roommates who must make decisions about cleaning simultaneously. Terry’s payoff is the first number in each cell and a higher number is a better outcome: Kerry Clean Don’t clean Terry Clean ( 8, 2 ) ( 3, 5 ) Don’t clean ( 10, 3 ) ( 4, 1 )
Options
A.Only Terry has a strictly dominant strategy.
B.Only Kerry has a strictly dominant strategy.
C.Both Terry and Kerry have a strictly dominant strategy.
D.Neither Terry and Kerry have a strictly dominant strategy.
E.None of the above.
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Step-by-Step Analysis
Begin by restating the scenario in my own words to set the stage for evaluating dominance across Terry and Kerry's choices.
Option A: Only Terry has a strictly dominant strategy. To check this, compare Terry's payoffs for each of Kerry's possible actions. If Kerry cleans, Terry gets 8 by cleaning and 10 by not cleaning; if Kerry does not clean, Terry gets 3 by cleaning and 4 by not cleaning. In both cases, 'D......Login to view full explanationLog in for full answers
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