Based on the information about Alan and Beatrice's strategies, which of the following statements is correct?
Understand the Problem
The question is asking which statement about the strategies of Alan and Beatrice is correct based on their indifference curves and payoff matrix given their choices to Deny or Confess. It involves understanding game theory concepts related to dominant strategies and payoffs.
Answer
When both students are completely selfish, (D, D) is now the dominant strategy equilibrium.
The final answer is: When both students are completely selfish, (D, D) is now the dominant strategy equilibrium.
Answer for screen readers
The final answer is: When both students are completely selfish, (D, D) is now the dominant strategy equilibrium.
More Information
The dominant strategy equilibrium often results in the highest individual payoff when players act entirely in self-interest, consistent with Nash equilibrium concepts.
Tips
Common mistakes include misinterpreting altruistic behavior as always beneficial or not recognizing the self-interest in strategy selection.
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