Consider a game with two players who cannot communicate, and in which each player is asked a question. The players can answer the question honestly or lie. If both answer honestly, each receives $100. If one player answers honestly and the other lies, the liar receives $500 and the honest player gets nothing. If both lie, then each receives $50. a) Describe the strategies and payoffs of this game b) Construct the payoff matrix c) Compare this game to the prisoners' dilemma. Are the two games similar or different? Briefly explain your answer
Consider a game with two players who cannot communicate, and in which each player is asked a question. The players can answer the question honestly or lie. If both answer honestly, each receives $100. If one player answers honestly and the other lies, the liar receives $500 and the honest player gets nothing. If both lie, then each receives $50. a) Describe the strategies and payoffs of this game b) Construct the payoff matrix c) Compare this game to the prisoners' dilemma. Are the two games similar or different? Briefly explain your answer
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter13: best-practice Tactics: Game Theory
Section: Chapter Questions
Problem 12E
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Consider a game with two players who cannot communicate, and in which each player is asked a question. The players can answer the question honestly or lie. If both answer honestly, each receives $100. If one player answers honestly and the other lies, the liar receives $500 and the honest player gets nothing. If both lie, then each receives $50.
a) Describe the strategies and payoffs of this game
b) Construct the payoff matrix
c) Compare this game to the prisoners' dilemma. Are the two games similar or different? Briefly explain your answer.
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