Represent the following strategic interaction using a payoff matrix. A couple (a she and a he) is going out for an evening. They have two options: watching a football match or going to an opera. Unfortunately his mobile phone runs out of battery. Unable to reach each other, each of them needs to go to one of the possible venues without knowing where his/her partner has gone. Spending the evening alone (whether at the football or the opera) is the worst outcome for both of them. Conditional on going out together, she prefers football to opera while he prefers opera to football. Make “she” Player 1 when writing the payoff matrix.
Question
Represent the following strategic interaction using a payoff matrix. A couple (a she and a he) is going out for an evening. They have two options: watching a football match or going to an opera. Unfortunately his mobile phone runs out of battery. Unable to reach each other, each of them needs to go to one of the possible venues without knowing where his/her partner has gone. Spending the evening alone (whether at the football or the opera) is the worst outcome for both of them. Conditional on going out together, she prefers football to opera while he prefers opera to football. Make “she” Player 1 when writing the payoff matrix.
Solution
The payoff matrix for this strategic interaction would look like this:
| Football (He) | Opera (He) | |
|---|---|---|
| Football (She) | (2,1) | (0,0) |
| Opera (She) | (0,0) | (1,2) |
Here's how to interpret this:
- If both go to the football match, she gets her preferred outcome (so she gets a payoff of 2), and he gets his less preferred outcome (so he gets a payoff of 1).
- If both go to the opera, she gets her less preferred outcome (so she gets a payoff of 1), and he gets his preferred outcome (so he gets a payoff of 2).
- If they end up at different venues, they both get a payoff of 0 because they both end up alone, which is the worst outcome for both of them.
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