Exhibit 24-10

Suppose that the letter grade earned on a test for each student in a class depends upon how well he\she does relative to other students in the class. This exhibit shows a prisoner's dilemma setting for two representative students in the class, George and Gina.
Refer to Exhibit 24-10. If George and Gina are in a prisoner's dilemma setting, they are likely to end up in box ___________ in the diagram.
A)1
B)2
C)3

Question

Exhibit 24-10

Suppose that the letter grade earned on a test for each student in a class depends upon how well he\she does relative to other students in the class.  This exhibit shows a prisoner's dilemma setting for two representative students in the class, George and Gina.
Refer to Exhibit 24-10.  If George and Gina are in a prisoner's dilemma setting, they are likely to end up in box ___________ in the diagram.
A)1 
B)2 
C)3

Quizplus · Accepted Answer

In a prisoner's dilemma setting, both students have an incentive to choose strategy D, which is to study less and hope the other student does worse. However, if both students choose this strategy, they will end up with lower grades, represented by box 4. Thus, even though it is tempting to choose strategy D, the best choice for both students is to choose strategy C, which results in both students getting higher grades (represented by box 2) than if they both choose strategy D. Choosing strategy B is not rational, as it results in a lower grade for the student who chooses it, regardless of what the other student chooses. And choosing strategy A is not rational for either student, as it results in a lower grade than if they both choose strategy C.

Exhibit 24-10 Suppose That the Letter Grade Earned on a Test for a Test