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Person A and Person B are deciding on whether to purchase a small or large car. Small cars have fuel efficiency advantages and convenience in
Person "A" and Person "B" are deciding on whether to purchase a small or large car. Small cars have fuel efficiency advantages and convenience in parking, but some are concerned that the safety of small cars are compromised if too many large cars are on the road. Game Theory Matrix: Small vs Large Car Choice Person B: Small Car Person B: Large Car Person A: Small Car $80 $70 $30 $90 Person A: Large Car $105 $40 $50 $60 Higher numbers indicate more benefit for the players. Assume both players know what the matrix looks like. What is the most likely outcome (i.e. the nash equilibrium)? Group of answer choices Both choose: Large Car "B" chooses Small Car; "A" chooses Large Car "A" chooses Small Car; "B" chooses Large Car Both choose: Small Car
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