The Cold War example in your text illustrated several important points about sequential games. Which was not one of those points?
A)Actors must know the values of the payoff tree.
B)A doomsday device by one party can offset a bad outcome that pure rationality by all parties would dictate.
C)One party might accept a worse outcome than the rational outcome in order to punish the opposing party or to maintain parity between the parties involved.
D)The final outcome will be the same whether the parties are rational or not.

Question

Quizplus · Accepted Answer

The final outcome can be different depending on whether the parties are rational or not. In the Cold War example, it was the possibility of irrational behavior (launching a nuclear attack) that made both parties hesitant to make the first move and eventually led to a peaceful resolution.

The Cold War Example in Your Text Illustrated Several Important