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.By allowing for a timing element in this game,i.e. ,letting either Jim or Celia buy a ticket first and then letting the other choose second,the equilibrium is __________,based on __________.
A) still uncertain;who buys the second ticket
B) now able to be determined;who buys the first ticket
C) now able to be determined;who buys the second ticket
D) still uncertain;who buys the first ticket
E) now able to be determined;who is more cooperative

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.By allowing for a timing element in this game,i.e. ,letting either Jim or Celia buy a ticket first and then letting the other choose second,the equilibrium is __________,based on __________.
A) still uncertain;who buys the second ticket 
B) now able to be determined;who buys the first ticket 
C) now able to be determined;who buys the second ticket 
D) still uncertain;who buys the first ticket 
E) now able to be determined;who is more cooperative

Quizplus · Accepted Answer

If Jim buys the first ticket, he will choose Rambo X as it gives him a higher payoff. If Celia buys the first ticket, she will choose Das Auto for the same reason. Thus, the equilibrium can be determined based on who buys the first ticket. In this case, the best choice would be for Jim to buy the first ticket and choose Rambo X. This way, he will get a payoff of 6, which is better than the payoff of 4 he would get if Celia bought the first ticket and chose Das Auto.

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