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Question: ptv and qrstv are trying to decide whether to air...

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P-TV and QRS-TV are trying to decide whether to air a sit-com or a reality show in a given time slot. Viewers like both sit-coms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below.

-$5 million for QRS-TV -$5 million for P-TV p-TV Sit-com chooses Sit-com +$5 million for QRS-TV +$20 million for P-TV Reality QRS-TV chooses +$20 million for QRS-TV +$5 million for P-TV Sit-com Reality P-TV +$10 million for QRS-TV +$10 million for P-TV chooses Reality

P-TV will air a sit-com:

Select one:

a. only if QRS-TV is also airing a sit-com.

b. only if QRS-TV is airing a reality show.

c. no matter what QRS-TV does.

d. never.

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