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.
-Game theory was developed in order to understand
A) how to win more at gambling.
B) why agreements to fix output between firms fail.
C) how the police can get suspects to confess.
D) why the U.S.and Russia continue to build more nuclear weapons.
E) how choices affect outcomes when the players are interdependent.

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. 
-Game theory was developed in order to understand
A) how to win more at gambling. 
B) why agreements to fix output between firms fail. 
C) how the police can get suspects to confess. 
D) why the U.S.and Russia continue to build more nuclear weapons. 
E) how choices affect outcomes when the players are interdependent.

Quizplus · Accepted Answer

Game theory was developed to analyze situations where the outcome depends on the choices of multiple decision-makers, highlighting the interdependence of their actions.

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