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.The way the game is structured,it is best for
A) both Peter and Anita to cheat.
B) Anita to do the opposite of Peter.
C) Anita to do the same as Peter.
D) Peter to do the same as Anita.
E) Peter to do the opposite of what Anita does.

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.The way the game is structured,it is best for
A) both Peter and Anita to cheat. 
B) Anita to do the opposite of Peter. 
C) Anita to do the same as Peter. 
D) Peter to do the same as Anita. 
E) Peter to do the opposite of what Anita does.

Quizplus · Accepted Answer

Anita should do the same as Peter because if Peter cheats, Anita will get $100 if she cheats and $0 if she doesn't. If Peter doesn't cheat, Anita will get $0 if she cheats and $50 if she doesn't. So, no matter what Peter does, Anita is better off cheating.

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