Based on the information which of the following statements is correct?
Understand the Problem
The question pertains to a scenario involving two students, Alan and Beatrice, and their choices of denying or confessing during an interview. It explores the consequences of their actions based on a payoff matrix, asking which statement about their strategic interaction is correct.
Answer
The examiners have managed to devise a scheme in which the students will definitely confess.
The examiners have managed to devise a scheme in which the students will definitely confess.
Answer for screen readers
The examiners have managed to devise a scheme in which the students will definitely confess.
More Information
In this situation, confessing is a dominant strategy for both Alan and Beatrice. If each acts in their own self-interest, the expected outcome is for both to confess, as this action maximizes their minimum payoff compared to other strategies.
Tips
A common mistake is to misinterpret the payoff table and not correctly identify the dominant strategy.
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