Question

A celebrity must choose between staying home (h) where the paparazzi can’t take photos of her and going to the park (p) where they can. after she makes her decision, the paparazzi chooses between not working (nw) and working (w). if the celebrity stays at home and the paparazzi don’t work the payoff is (10,10) for the celebrity and paparazzi respectively. if the celebrity stays home and the paparazzi works, the payoff is (10,5). if the celebrity goes to the park and the paparazzi works, the payoff is (5,20). if the celebrity goes to the park and the paparazzi does not work, the payoffs are (20,10). which of the following is true if the celebrity is offered the opportunity to be the second mover (i.e. the paparazzi would decide first)

Answer 1

If the celebrity can be the second mover, she can make decisions to maximize her payoff based on the paparazzi's actions, either staying home if they work or going to the park if they don't.

The question discusses a strategic decision scenario involving a celebrity and the paparazzi. If the celebrity has the opportunity to be the second mover, meaning the paparazzi decides first whether to work or not, then she can make her decision based on the paparazzi's choice, leading to a potentially more favorable outcome. For instance, if the paparazzi decide to work, the celebrity could choose to stay home, resulting in a payoff of (10,5). If the paparazzi choose not to work, the celebrity could go to the park, enjoying a payoff of (20,10). The optimal strategy for the celebrity as a second mover is to counter the paparazzi's decision to maximize her own payoff while considering the paparazzi’s potential actions. This situation is similar to the concept of game theory, where players make strategic decisions that are based on the expected actions of others.