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.In this game,Matthew is the remote owner of an office that is managed by Dean,and Dean promises to always choose the upper branch at Y or Z in order to maximize Matthew's payoff.
-Refer to the above decision tree.Suppose that the society in which Matthew and Dean live is one in which all citizens have been strongly conditioned to behave honestly,such that Dean would be willing to pay 600,000 to avoid the feelings of guilt that would accompany dishonest behaviour.The outcome of this game is ________ for Matthew and ________ for Dean,because ________.
A) 1000;1000;the two individuals want to have the same payoff
B) 500;1500;Matthew cannot trust Dean to choose the upper branch
C) 1.5 million;1 million;Matthew can trust Dean to choose the upper branch
D) 400;1.5 million;Dean wants to take advantage of Matthew
E) 0;0;the game will not be played

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.In this game,Matthew is the remote owner of an office that is managed by Dean,and Dean promises to always choose the upper branch at Y or Z in order to maximize Matthew's payoff.
-Refer to the above decision tree.Suppose that the society in which Matthew and Dean live is one in which all citizens have been strongly conditioned to behave honestly,such that Dean would be willing to pay 600,000 to avoid the feelings of guilt that would accompany dishonest behaviour.The outcome of this game is ________ for Matthew and ________ for Dean,because ________.
A) 1000;1000;the two individuals want to have the same payoff 
B) 500;1500;Matthew cannot trust Dean to choose the upper branch 
C) 1.5 million;1 million;Matthew can trust Dean to choose the upper branch 
D) 400;1.5 million;Dean wants to take advantage of Matthew 
E) 0;0;the game will not be played

Quizplus · Accepted Answer

In this scenario, due to societal conditioning, Dean would choose the upper branch at node Y, resulting in a payout of 1.5 million for Matthew and 1 million for Dean. Matthew can trust Dean to make the optimal decision for both of them, leading to the best possible outcome. Choosing any other option would result in a suboptimal outcome for both parties.

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