Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice.
This game:
A)is a prisoner's dilemma.
B)is not a prisoner's dilemma.
C)is an ultimatum bargaining game.
D)has no Nash equilibrium.

Question

Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice.    
 This game:
A)is a prisoner's dilemma. 
B)is not a prisoner's dilemma. 
C)is an ultimatum bargaining game. 
D)has no Nash equilibrium.

Quizplus · Accepted Answer

In a prisoner's dilemma the players have dominant strategies that lead to sub-optimal outcomes. That pattern is not present in this case.

Suppose Jordan and Lee Are Trying to Decide What to Do