Suppose Jim and Celia,a married couple,are trying to decide what to do on a Friday.Jim would prefer to see Rambo X while Celia would prefer to see Das Auto,an arty foreign film.Both films are showing at the local Megaplex.The joy they receive from the films and seeing them together,or separately,is shown in the payoff matrix.Both Jim and Celia know the information contained in the payoff matrix.They purchase their tickets simultaneously,ignorant of the other's choice.
-Refer to the payoff matrix above.This game has __________ potential equilibrium outcomes.
A) 0
B) 1
C) 2
D) 3
E) 4

Question

Suppose Jim and Celia,a married couple,are trying to decide what to do on a Friday.Jim would prefer to see Rambo X while Celia would prefer to see Das Auto,an arty foreign film.Both films are showing at the local Megaplex.The joy they receive from the films and seeing them together,or separately,is shown in the payoff matrix.Both Jim and Celia know the information contained in the payoff matrix.They purchase their tickets simultaneously,ignorant of the other's choice. 
-Refer to the payoff matrix above.This game has __________ potential equilibrium outcomes.
A) 0 
B) 1 
C) 2 
D) 3 
E) 4

Quizplus · Accepted Answer

The payoff matrix has two potential equilibrium outcomes: (Das Auto, Das Auto) and (Rambo X, Rambo X). In both scenarios, neither Jim nor Celia have an incentive to deviate from their chosen movie, as switching to the other movie would result in a lower payoff for both of them. Therefore, the best choice for Jim and Celia would be to both choose the same movie, either Das Auto or Rambo X, to reach one of the potential equilibrium outcomes.

Suppose Jim and Celia,a Married Couple,are Trying to Decide What