Suppose that Avery and Stacey are going shopping at the local mall and that each decides independently whether to buy many items or few items. If both shoppers buy a few items, both will receive 70 utils; if both buy many items, both will receive 100 utils. If one buys many items, and the other buys few items, the one who buys many items will receive 150 utils, while the other will receive 40 utils. What are Avery and Stacey's MOST likely strategies?
A)Both will buy many items.
B)Both will buy a few items.
C)Avery will buy many items, while Stacey will buy a few items.
D)Stacey will buy many items, while Avery will buy a few items.

Question

Quizplus · Accepted Answer

Given the scenario, both Avery and Stacey are most likely to buy many items because this strategy maximizes their individual utility (100 utils each) without depending on the other's choice.

Suppose That Avery and Stacey Are Going Shopping at the Local