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 indicates to Matthew that he will always select the upper branch at either Y or Z.One would classify this statement as a
A) credible threat.
B) promise that is not credible.
C) threat that is not credible.
D) credible promise.
E) commitment device.

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 indicates to Matthew that he will always select the upper branch at either Y or Z.One would classify this statement as a
A) credible threat. 
B) promise that is not credible. 
C) threat that is not credible. 
D) credible promise. 
E) commitment device.

Quizplus · Accepted Answer

Dean's statement is a promise to always select the upper branch, but without any mechanism to enforce or ensure this action, it lacks credibility.

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