Scenario 13.3
Consider the following game:
-In the game in Scenario 13.3, the equilibrium outcome:
A) is for Moto to offer a CD changer and Zport to offer low-profile tires.
B) is for Moto to offer a CD changer and Zport to offer a sun roof.
C) is for Moto to offer free maintenance and Zport to offer low-profile tires.
D) is for Moto to offer free maintenance and Zport to offer a sunroof.
E) does not exist in pure strategies.

Question

Scenario 13.3
Consider the following game: 
-In the game in Scenario 13.3, the equilibrium outcome:
A) is for Moto to offer a CD changer and Zport to offer low-profile tires. 
B) is for Moto to offer a CD changer and Zport to offer a sun roof. 
C) is for Moto to offer free maintenance and Zport to offer low-profile tires. 
D) is for Moto to offer free maintenance and Zport to offer a sunroof. 
E) does not exist in pure strategies.

Quizplus · Accepted Answer

In a game theory context, the equilibrium outcome is determined by the strategies that both players (in this case, Moto and Zport) will choose, assuming they are rational and have full knowledge of the payoff matrix. The choice where Moto offers a CD changer and Zport offers low-profile tires is the equilibrium if, given Zport's choice of low-profile tires, Moto's best response is to offer a CD changer, and given Moto's choice of a CD changer, Zport's best response is to offer low-profile tires. This mutual best response indicates an equilibrium.

Scenario 13.3 Consider the Following Game