1.In each cell in the table below, the first number is the number of years Butch will...
Question:
1.In each cell in the table below, the first number is the number of years Butch will spend in prison, and the second is the number that Sundance will spend in prison given the strategies chosen by Butch and Sundance.
If years in prison are minuses, then we can write up the problem like this:
Sundance Keep quiet Keep quiet Butch Testify
(- 1, - 1)
(0, -10)
Testify
(-10, 0)
(-6, -6)
a. IfSundance keeps quiet, what's the best choice (highest payoff) for Butch: keep quiet or testify?
b. If Sundance chooses testify, what's the best choice for Butch: keep quiet or testify?
c. What's the best choice for Butch? What's the best choice for Sundance?
d. Using the definition in this chapter, does Butch have a "dominant strategy"? If so, what is it?
e. What is your prediction about what will happen?
f.
How does this help explain why the police never put two suspects in the same interroga tion room? (Note the similarity between this question and the earlier Adam Smith quote.)
Step by Step Answer:
Modern Principles Microeconomics
ISBN: 9781429239998
2nd Edition
Authors: Tyler Cowen, Alex Tabarrok