Use the following to answer question:
Figure 12.7
-(Figure 12.7) Suppose that Player A promises a $2 side payment to Player B if Player B chooses Pass. As a result of the side payment, the game's outcome will change from:
A) (2 , 10) to (10 , 9).
B) (5 , 0) to (8 , 11).
C) (5 , 0) to (7 , 2).
D) (2 , 10) to (8 , 11).

Question

Use the following to answer question:
Figure 12.7 
-(Figure 12.7) Suppose that Player A promises a $2 side payment to Player B if Player B chooses Pass. As a result of the side payment, the game's outcome will change from:
A) (2 , 10) to (10 , 9). 
B) (5 , 0) to (8 , 11). 
C) (5 , 0) to (7 , 2). 
D) (2 , 10) to (8 , 11).

Quizplus · Accepted Answer

Adding the $2 side payment will change Player B's payoff from 0 to 2 if they choose Pass. This means that Player B's best response will now be to choose Pass, resulting in a change of outcome from (5,0) to (8,11).

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