Multiple Choice
-Refer to Figures b and c.Assume instead of the rules described in problem 13,the girls' mother shows favoritism towards Kate because she is the younger of the two girls.If both girls deny watching TV,Kate will not be punished,but Alice will still be grounded for 3 weeks because she is older and should be setting a good example for her younger sister.The altered game is shown in the following payoff matrix.What is Kate's best response?
A) Squeal
B) Deny
C) She does not have one
D) It depends upon what Alice does
Correct Answer:
Verified
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