Takashi Hashiyama, president of the Japanese electronics firm Maspro Denkoh Corp

Question

Takashi Hashiyama, president of the Japanese electronics firm Maspro Denkoh Corporation, was torn between having Christie's or Sotheby's auction the company's $20 million art collection, which included a van Gogh,a Cezanne, and an early Picasso (Carol Vogel, "Rock, Paper, Payoff," New York Times, April 29, 2005: A1, A24) He resolved the issue by having the two auction houses' representatives compete in the playground game of rock-paper-scissors. A rock (fist) breaks scissors (two fingers sticking out), scissors cut paper (fiat hand), and paper smothers rock. At stake were several million dollars in commissions. Christie's won: scissors beat Rock Paper Scissors Rock 1 if you The payoff matrix for this rock-paper-scissors game is illustrated to the right. Notice that the payoff is lose, 0 if you tie, and 1 if you win. OA. If one firm pursues a mixed strategy whereby randomly rock is chosen with probability less than 0.333 Paper and paper is chosen with probability greater than 0.333, then the other firm should choose scissons with certainty. O B. If one firm pursues a mixed strategy whereby randomly rock is chosen with probability less than 0.333 and paper is chosen with probability greater than 0.333, then the other firm should pursue the same mixed strategy. If one firm pursues a pure strategy whereby randomly rock is chosen with probability 0.333. paper is chosen with probability 0.333, and scissors is chosen with probability 0.333, then the other firm should pursue the same pure strategy. Scis ° C. 0 D. Both firms have a dominant strategy, which is to always choose scissors. 0 E. If one firm pursues a mixed strategy whereby randomly rock is chosen with probability 0.333. paper is chosen with probability 0.333, and scissors is chosen with probability 0.333, then the other firm should pursue the same mixed strategy

Explanation / Answer

Answer :- Option E). If one firm pursues a mixed strategy whereby randomly rock is chosen with probability 0.333, paper is chosen with probability 0.333, and scissors is chosen with probability 0.333, then the other firm should pursue the same mixed strategy.

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