Consider a game in which each of three men is given $20. All three must secretly decide whether they will contribute any part of their $20 to a trust fund. At the end of the game, each player will receive 40% of the total money contributed to the trust fund, in addition to any of the remaining $20 that he is holding. If all three players act altruistically, each player will earn $_____ at the end of the game.
A) 24
B) 20
C) 8
D) 0

Question

Quizplus · Accepted Answer

If all three players act altruistically and contribute their entire $20 to the trust fund, the total contribution will be $60. Each player will then receive 40% of $60, which is $24, in addition to having contributed their entire initial $20, leaving them with no remaining personal funds. Thus, each player ends up with $24.

Consider a Game in Which Each of Three Men Is