In the above decision tree,Peter picks first and Anita picks second.Peter and Anita both know the payoffs to each choice for both themselves and each other.
-Refer to the decision tree above.Peter's best choice is to
A) remain faithful.
B) cheat.
C) cheat and hope Anita remains faithful.
D) remain faithful but fear that Anita will cheat.
E) cheat and assume that Anita will as well.

Question

In the above decision tree,Peter picks first and Anita picks second.Peter and Anita both know the payoffs to each choice for both themselves and each other.
-Refer to the decision tree above.Peter's best choice is to
A) remain faithful. 
B) cheat. 
C) cheat and hope Anita remains faithful. 
D) remain faithful but fear that Anita will cheat. 
E) cheat and assume that Anita will as well.

Quizplus · Accepted Answer

Peter's best choice is to remain faithful because it gives him the highest expected payoff.

In the Above Decision Tree,Peter Picks First and Anita Picks