Exit, Voice, and Loyalty
Below is the Exit, Voice, and Loyalty game between the state and the citizen. Recall that E is the payoff that the citizen gets when she exits, L is the payoff that the state gets from retaining a loyal citizen, 0 is the payoff that the citizen gets from remaining loyal, and C is the cost that the citizen must pay for using voice.
Let E = 0.5, let L 1, and let C = 0.25.

-What is the expected outcome of the game if you use these payoff values?

Question

Exit, Voice, and Loyalty
Below is the Exit, Voice, and Loyalty game between the state and the citizen. Recall that E is the payoff that the citizen gets when she exits, L is the payoff that the state gets from retaining a loyal citizen, 0 is the payoff that the citizen gets from remaining loyal, and C is the cost that the citizen must pay for using voice.
Let E = 0.5, let L > 1, and let C = 0.25.
 
-What is the expected outcome of the game if you use these payoff values?

Quizplus · Accepted Answer

The expected outcome is that the citizen uses voice and the state responds, as this is typically the most favorable scenario for both parties, leading to a resolution of the issue.