Alice chooses action a or action b, and her choice is observed by Bob. If Alice chooses action a, then Alice receives a payoff of 5 and Bob receives a payoff of 7. If Alice chooses action b, then Bob chooses action cor action d. If Bob chooses action c, then Alice receives a payoff of 10 and Bob receives a payoff of 5. If Bob chooses action d, then Alice receives a payoff of 0 and Bob receives a payoff of 3. Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.) O This game has imperfect information. O Alice's backward induction payoff is 5. O This is a promise game. O Alice's backward induction payoff is 0. O This is a prisoners' dilemma. O Bob's backward induction payoff is 5. O Bob's backward induction payoff is 3. O This is a threat game.
Alice chooses action a or action b, and her choice is observed by Bob. If Alice chooses action a, then Alice receives a payoff of 5 and Bob receives a payoff of 7. If Alice chooses action b, then Bob chooses action cor action d. If Bob chooses action c, then Alice receives a payoff of 10 and Bob receives a payoff of 5. If Bob chooses action d, then Alice receives a payoff of 0 and Bob receives a payoff of 3. Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.) O This game has imperfect information. O Alice's backward induction payoff is 5. O This is a promise game. O Alice's backward induction payoff is 0. O This is a prisoners' dilemma. O Bob's backward induction payoff is 5. O Bob's backward induction payoff is 3. O This is a threat game.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Alice chooses action a or action b, and her choice is observed by Bob. If Alice chooses action a, then Alice receives a payoff of 5 and Bob receives
a payoff of 7. If Alice chooses action b, then Bob chooses action cor action d. If Bob chooses action c, then Alice receives a payoff of 10 and Bob
receives a payoff of 5. If Bob chooses action d, then Alice receives a payoff of 0 and Bob receives a payoff of 3.
Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.)
O This game has imperfect information.
O Alice's backward induction payoff is 5.
O This is a promise game.
O Alice's backward induction payoff is 0.
O This is a prisoners' dilemma.
O Bob's backward induction payoff is 5.
O Bob's backward induction payoff is 3.
O This is a threat game.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F955a3b8a-9401-45b7-8254-de38db57cee0%2F7155473e-e5f9-485c-bf4e-d971bc95fbff%2Fp6dbccq_processed.png&w=3840&q=75)
Transcribed Image Text:Alice chooses action a or action b, and her choice is observed by Bob. If Alice chooses action a, then Alice receives a payoff of 5 and Bob receives
a payoff of 7. If Alice chooses action b, then Bob chooses action cor action d. If Bob chooses action c, then Alice receives a payoff of 10 and Bob
receives a payoff of 5. If Bob chooses action d, then Alice receives a payoff of 0 and Bob receives a payoff of 3.
Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.)
O This game has imperfect information.
O Alice's backward induction payoff is 5.
O This is a promise game.
O Alice's backward induction payoff is 0.
O This is a prisoners' dilemma.
O Bob's backward induction payoff is 5.
O Bob's backward induction payoff is 3.
O This is a threat game.
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