In the above decision tree,Matthew picks first and Dean picks second.Matthew and Dean both know the payoffs to each choice for both themselves and each other.
-Refer to the decision tree above.Suppose Dean promises Matthew that he will always select the upper branch at either Y or Z.If Matthew believes Dean and Dean keeps his promise,the outcome of the game is
A) unpredictable.
B) Matthew and Dean both get $1000.
C) Matthew gets $500 and Dean gets $1500.
D) Matthew gets $1.5 million and Dean gets $1 million.
E) Matthew gets $400 and Dean gets $1.5 million.

Question

In the above decision tree,Matthew picks first and Dean picks second.Matthew and Dean both know the payoffs to each choice for both themselves and each other.
-Refer to the decision tree above.Suppose Dean promises Matthew that he will always select the upper branch at either Y or Z.If Matthew believes Dean and Dean keeps his promise,the outcome of the game is
A) unpredictable. 
B) Matthew and Dean both get $1000. 
C) Matthew gets $500 and Dean gets $1500. 
D) Matthew gets $1.5 million and Dean gets $1 million. 
E) Matthew gets $400 and Dean gets $1.5 million.

Quizplus · Accepted Answer

If Dean always selects the upper branch at either Y or Z, then Matthew should choose X. This will lead to the final outcome where Matthew gets $1.5 million and Dean gets $1 million. This is the best possible outcome for Matthew.

In the Above Decision Tree,Matthew Picks First and Dean Picks