MULTIPLE CHOICE (identify the one best answer below and explain your reasoning for each option): If James is the leader in the game then: (hint: you can draw the game tree to see it better)a. There are two equilibrium outcomes that coincide with the Nash equilibria.b. The unique equilibrium outcome is James playing Rooster and Buzz playing Chicken.c. The equilibrium outcome is the same as if Buzz were the leader.d. All of the above.e. None of the above 5) (KEY QUESTION) In the movie Rebel Without a Cause, James Dean and buzLfavours of sixteen year old Judy. Buzz's gang members steal two cars. The group of teenagers gathers on aLos Angeles lookout, with a cliff that drops down to the Pacific Ocean. James and Buzz are to drive the stolencars toward the cliff. The first person to jump from his car is declared the chicken (which is bad). The lastperson to jump is the hero (which is good), capturing Judy's affection and the gang's respect. The driverlesscars continue over the cliff and plunge to the rocks at its base.Each driver can make two possible actions. Jump when he feels endangered (be a chicken) or jump AFTERthe other driver jumps (be a rooster). Assuming that both feel endangered at the same moment, the followingmatrix represents the payoffs for James and Buzz for each choice of strategy.BuzzRooster-10, 20-50,-50Chicken3,320,-10JamesChickenRooster

The matrix shows the choices of Buzz:

Answered: 5) (KEY QUESTION) In the movie Rebel…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 22CTQ: You just got a job in Washington, D.C. You move into an apartment with some acquaintances. All your...

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MULTIPLE CHOICE (identify the one best answer below and explain your reasoning for each option): If James is the leader in the game then: (hint: you can draw the game tree to see it better)
a. There are two equilibrium outcomes that coincide with the Nash equilibria.
b. The unique equilibrium outcome is James playing Rooster and Buzz playing Chicken.
c. The equilibrium outcome is the same as if Buzz were the leader.
d. All of the above.
e. None of the above

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