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.Assuming Jim is self-interested and believes Celia is also self-interested,if Celia buys her ticket first,Jim will then
A) buy a ticket to Rambo X.
B) flip a coin to determine which ticket to buy.
C) go home.
D) buy a ticket to Das Auto.
E) still not know which ticket to purchase.

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.Assuming Jim is self-interested and believes Celia is also self-interested,if Celia buys her ticket first,Jim will then
A) buy a ticket to Rambo X. 
B) flip a coin to determine which ticket to buy. 
C) go home. 
D) buy a ticket to Das Auto. 
E) still not know which ticket to purchase.

Quizplus · Accepted Answer

The best choice for Jim is to buy a ticket to Das Auto because it has a higher payoff for their shared experience, which Jim values. If Celia buys her ticket first, Jim will choose the movie with the highest payoff for the joint experience. Therefore, the correct answer is D.

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