3. Anthony loves going to the opera while Becky loves watching football. The following diagram shows the payoffs for their choice of activity. For example, if Anthony chooses opera and Becky chooses football, then the activities are valued at £10 to Anthony and £20 to Becky, respectively. Assume that they can only choose one activity each. Based on this information, determine whether each of the following statements is true or false. Becky Opera Football Opera 80, 10 0,0 Football 10, 20 20,40 Anthony (a) There are two Nash equilibria: (Opera, Opera) and (Football, Football). (b) If Anthony announces that he will choose Opera and sticks to it, then (Opera, Opera) will be chosen. (c) If Anthony offers £20 to Becky for coming to the opera with him, then (Opera, Opera) may be chosen. (d) If Anthony offers £50 to Becky for coming to the opera with him, then (Opera, Opera) will definitely be chosen.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter10: Consumer Choice Theory
Section: Chapter Questions
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3. Anthony loves going to the opera while Becky loves watching football. The following diagram
shows the payoffs for their choice of activity. For example, if Anthony chooses opera and Becky
chooses football, then the activities are valued at £10 to Anthony and £20 to Becky, respectively.
Assume that they can only choose one activity each. Based on this information, determine whether
each of the following statements is true or false.
Becky
Opera
Football
Opera
80, 10
0,0
Football
10, 20
20, 40
Anthony
(a) There are two Nash equilibria: (Opera, Opera) and (Football, Football).
(b) If Anthony announces that he will choose Opera and sticks to it, then (Opera, Opera) will be
chosen.
(c) If Anthony offers £20 to Becky for coming to the opera with him, then (Opera, Opera) may be
chosen.
(d) If Anthony offers £50 to Becky for coming to the opera with him, then (Opera, Opera) will
definitely be chosen.
Transcribed Image Text:3. Anthony loves going to the opera while Becky loves watching football. The following diagram shows the payoffs for their choice of activity. For example, if Anthony chooses opera and Becky chooses football, then the activities are valued at £10 to Anthony and £20 to Becky, respectively. Assume that they can only choose one activity each. Based on this information, determine whether each of the following statements is true or false. Becky Opera Football Opera 80, 10 0,0 Football 10, 20 20, 40 Anthony (a) There are two Nash equilibria: (Opera, Opera) and (Football, Football). (b) If Anthony announces that he will choose Opera and sticks to it, then (Opera, Opera) will be chosen. (c) If Anthony offers £20 to Becky for coming to the opera with him, then (Opera, Opera) may be chosen. (d) If Anthony offers £50 to Becky for coming to the opera with him, then (Opera, Opera) will definitely be chosen.
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