Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. Suppose Cody tells Lee that if Lee chooses aggression, then Cody will also choose aggression, and if Lee chooses cooperation, then Cody will also choose cooperation. Cody's statement is:
A)a commitment device.
B)not credible.
C)a description of the two equilibria in this game.
D)credible.

Question

Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch.  Suppose Cody tells Lee that if Lee chooses aggression, then Cody will also choose aggression, and if Lee chooses cooperation, then Cody will also choose cooperation. Cody's statement is:
A)a commitment device. 
B)not credible. 
C)a description of the two equilibria in this game. 
D)credible.

Quizplus · Accepted Answer

Cody's statement is not credible because if Lee chooses aggression, then Cody's best response is to choose cooperation, and if Lee chooses cooperation, then Cody's best response is to choose aggression.

Lee and Cody Are Playing a Game in Which Lee