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Above Is the Exit, Voice, and Loyalty Game Between the State

Question 26

Essay

  Above is the Exit, Voice, and Loyalty game between the state (S) and the citizen (C). E is what the citizen gets from her exit option. R is what the state gets from the support (revenue) of the citizen. 0 is what the citizen gets for remaining loyal to the state. c is the cost for the citizen of exercising her voice option. For the following questions, let R =2. Let c = 0.25. -Given that the state depends on the citizen in this example (R > 1), to what extent does the citizen's behavior depend on the attractiveness of her exit options? Above is the Exit, Voice, and Loyalty game between the state (S) and the citizen (C). E is what the citizen gets from her exit option. R is what the state gets from the support (revenue) of the citizen. 0 is what the citizen gets for remaining loyal to the state. c is the cost for the citizen of exercising her voice option.
For the following questions, let R =2. Let c = 0.25.
-Given that the state depends on the citizen in this example (R > 1), to what extent does the citizen's behavior depend on the attractiveness of her exit options?

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