Figure 8.9
-Consider Figure 8.9. If Becky's payoff in the second rectangle from the top were 80 instead of 60, the outcome of the game would be that

Question

Quizplus · Accepted Answer

If Becky's payoff in the second rectangle from the top were 80 instead of 60, she would have a greater incentive to choose a high price. David would still have an incentive to choose a low price to avoid a loss. Therefore, the best choice for Becky would be to choose a high price, and the best choice for David would be to choose a low price. This leads to the outcome that Becky chooses a high price and David chooses a low price (Choice C).

Figure 8.9 -Consider Figure 8.9. If Becky's Payoff in the Second Rectangle