Question

Determine which of the following situations describe games and which describe decisions. In each case, indicate what specific features of the sit- uation caused you to classify it as you did. (a) A party nominee for president of the United States must choose whether to use private financing or public financing for her campaign. (b) Frugal Fred receives a $20 gift card for downloadable music and must choose whether to purchase individual songs or whole albums. (c) Beautiful Belle receives 100 replies to her online dating profile and must choose whether to reply to each of them. (d) NBC chooses how to distribute its television shows online this season. The executives consider Amazon, iTunes, and/or NBC. com. The fee they might pay to Amazon or to iTunes is open to negotiation. (e) China chooses a level of tariffs to apply to American imports.

Answer 1

Answer:

(a) It is a game because each decision has an attached payoff with it.

(b) It is a decision because Frugal Fred have to select from two given options. Since yes or no decision to be made.

(c) Here, payoff is attach with the decision. Therefore, it is a game.

(d) The decision to pay fee to Amazon or iTunes has an attached payoff with it, so it is a game.

(e) It is a decision because no other alternative attached with the decision. The tariff will be imposed by the china irrespective of the America's reaction over this.