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Table 12.14
-(Table 12.14) The payoffs represent profits in millions of dollars. Suppose that this simultaneous-move game is played once in each period for 3 periods. In period 1, the outcome will be _____, and in period 2, the outcome will be _____.
A) (6 , 6); (4 , 4)
B) (4 , 4); (4 , 4)
C) (2 , 7); (6 , 6)
D) (6 , 6); (6 , 6)

Question

Use the following to answer question:
Table 12.14 
-(Table 12.14) The payoffs represent profits in millions of dollars. Suppose that this simultaneous-move game is played once in each period for 3 periods. In period 1, the outcome will be _____, and in period 2, the outcome will be _____.
A) (6 , 6); (4 , 4) 
B) (4 , 4); (4 , 4) 
C) (2 , 7); (6 , 6) 
D) (6 , 6); (6 , 6)

Quizplus · Accepted Answer

In this simultaneous-move game, both players have a dominant strategy to choose R. Therefore, the outcome will be (4,4) in each period, regardless of the number of periods played.

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