-Consider the oil-drilling game in Figure 6.6. Payoffs are in millions of dollars. If both oil-drilling companies adopt its optimal mixing rule, PETROX's expected payoff is:
A) $24 million.
B) $36 million.
C) $42 million.
D) $58 million.
E) None of the above.

Question

-Consider the oil-drilling game in Figure 6.6. Payoffs are in millions of dollars. If both oil-drilling companies adopt its optimal mixing rule, PETROX's expected payoff is:
A) $24 million. 
B) $36 million. 
C) $42 million. 
D) $58 million. 
E) None of the above.

Quizplus · Accepted Answer

PETROX's expected payoff is calculated by considering the probabilities of each strategy and their respective payoffs. The optimal mixing rule leads to an expected payoff of $42 million for PETROX.

-Consider the Oil-Drilling Game in Figure 6