Scenario: Jack and Jill are siblings. Jack's father asked him how much money he would offer Jill if he gives him $50 as pocket money. He also told Jack that if Jill refuses the offer Jack makes, neither of them will get any money.
-Refer to the scenario above.A player should use ________ to play this game.

Question

Quizplus · Accepted Answer

In this scenario, both Jack and Jill must make their decisions simultaneously. The best way to approach this situation is by using backward induction. Jill would ask herself what she would do if Jack offered her only $1, and if she refuses, both of them would get nothing. In this case, Jill would still accept the offer because $1 is better than nothing. Therefore, Jack can safely offer Jill $1, and she would accept it. By using backward induction, this game can be solved, and the best choice for Jack is to offer $1 to Jill.

Scenario: Jack and Jill Are Siblings