a.at least one of them will be Pareto optimal.
b.they will all tend to be unstable.
c.they must provide the same total payoff to the players.
d.it is difficult to predict which of them will actually occur.
2006-11-12 15:28:18 · 2 answers · asked by pretty smile 2 in Social Science ➔ Economics
It is difficult to predict which one will occur. This is where other factors such as anchoring of expectations need to be considered to solve the problem. The answer is D!
2006-11-12 17:46:50 · answer #1 · answered by eco101 3 · 1⤊ 0⤋
Choice a is incorrect; consider an expanded prisoner's dilemma situation with each of the two traditional choices split into two similar options.
Choice c is incorrect, with the counterexample above functioning for careful choices of payoff weights.
Consider the meaning of a Nash equilibrium to decide between the remaining choices.
2006-11-12 16:07:36 · answer #2 · answered by Charles G 4 · 0⤊ 0⤋