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Figure: Payoff Matrix for Gehrig and Gabriel
-(Figure: Payoff Matrix for Gehrig and Gabriel) The figure Payoff Matrix for Gehrig and Gabriel describes two people who sell handmade Davy Crockett figurines in San Antonio. Both Gehrig and Gabriel have two strategies available to them: to produce 5,000 figurines each month or to produce 7,000 figurines each month. If both follow a tit-for-tat strategy, equilibrium will be reached when Gehrig produces _____ figurines and Gabriel produces _____ figurines.
A) 5,000; 5,000
B) 7,000; 7,000
C) 7,000; 5,000
D) 5,000; 7,000

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Use the following to answer questions:
Figure: Payoff Matrix for Gehrig and Gabriel 
-(Figure: Payoff Matrix for Gehrig and Gabriel) The figure Payoff Matrix for Gehrig and Gabriel describes two people who sell handmade Davy Crockett figurines in San Antonio. Both Gehrig and Gabriel have two strategies available to them: to produce 5,000 figurines each month or to produce 7,000 figurines each month. If both follow a tit-for-tat strategy, equilibrium will be reached when Gehrig produces _____ figurines and Gabriel produces _____ figurines.
A) 5,000; 5,000 
B) 7,000; 7,000 
C) 7,000; 5,000 
D) 5,000; 7,000

Quizplus · Accepted Answer

In a tit-for-tat strategy, each player mimics the other's previous action. If both start by cooperating (producing 5,000), they will continue to do so, reaching equilibrium at 5,000 figurines each.

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