Fred and Ethel are contestants on the game show Truth or Consequences. Fred and Ethel were introduced to each other moments before the show began. The game begins with the two contestants answering a trivia question. If they answer correctly, they are sent to separate isolation chambers where they must choose Truth or Consequences. They are told that if they both choose Truth then they will share equally a $10,000 prize. If one chooses Truth and the other chooses Consequences, the player choosing Consequences gets the entire $10,000 while the player choosing Truth gets nothing. If they both choose Consequences, they each get $100 as a parting gift. In this game, who has a dominant strategy?
A) Fred
B) Ethel
C) Both
D) Neither
E) Cannot be determined based on the information provided.

Question

Quizplus · Accepted Answer

Both Fred and Ethel have a dominant strategy to choose Consequences, as it maximizes their payoff regardless of the other player's choice.

Fred and Ethel Are Contestants on the Game Show Truth