Imagine a couple that agreed to meet this evening, but cannot recall if they wil
ID: 352167 • Letter: I
Question
Imagine a couple that agreed to meet this evening, but cannot recall if they wil be attending the opera or a football match (and the fact that they forgot is common knowledge). The husband would prefer to go to the football game. The wife would rather go to the opera. Both would prefer to go to the same place rather than different ones. Suppose they choose to go to the same activity, the one prefers such activity will receive a utility of 3 and the other will receive a utility of 1. If they miss each other, they will not receive any utility. If they cannot communicate, where should they go? (a) Write down the outcome matrix of this game. (b) What is the rational individual strategy for the couple?Explanation / Answer
This is game theory problem:
If they cannot communicate, where should they go then followiing scenarios are possible:
If the husband knows his wife went to the opera then he should also be going to opera, this will maximizes the payoff. Similarly if he knows is wife went to the football match then he should also join her in the football match.
Here both strategy profile (opera, opera) and (football, football) are mutual best response.
1. Possible payoff matrix is:
Opera Football
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Opera (3,1) (0,0)
Football (0,0) (1,3)
2. Rational individual strategy would be to go for independent events.