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 is Stacey's BEST response?
A)Buy many items.
B)Buy a few items.
C)Do whatever Avery does.
D)Stacey does not have a best response.

Question

Quizplus · Accepted Answer

Stacey's best response is to buy many items because, regardless of Avery's choice, buying many items ensures Stacey either 100 utils (if Avery also buys many) or 150 utils (if Avery buys few), both of which are higher than the outcomes if Stacey buys few items.

Suppose That Avery and Stacey Are Going Shopping at the Local