Scenario: Consider the tragedy of the commons problem. Suppose two firms (Row Inc. and Colm Inc.) are involved in a production process that exploits a natural resource. Each firm has two options: 1 and 2. The matrix below shows the game matrix for these two firms. The first number listed in each cell is the payoff to Row Inc., and the second number listed is the payoff to Colm Inc.

-Refer to the scenario above.This game is ________.
A) a zero-sum game for Row Inc. and for Colm Inc.
B) not a zero-sum game for Row Inc. and Colm Inc.
C) a zero-sum game for Row Inc. but not a zero-sum game for Colm Inc.
D) not a zero-sum game for Row Inc. but is a zero-sum game for Colm Inc.

Question

Scenario: Consider the tragedy of the commons problem. Suppose two firms (Row Inc. and Colm Inc.) are involved in a production process that exploits a natural resource. Each firm has two options: 1 and 2. The matrix below shows the game matrix for these two firms. The first number listed in each cell is the payoff to Row Inc., and the second number listed is the payoff to Colm Inc.
 
-Refer to the scenario above.This game is ________.
A) a zero-sum game for Row Inc. and for Colm Inc. 
B) not a zero-sum game for Row Inc. and Colm Inc. 
C) a zero-sum game for Row Inc. but not a zero-sum game for Colm Inc. 
D) not a zero-sum game for Row Inc. but is a zero-sum game for Colm Inc.

Quizplus · Accepted Answer

This game is not a zero-sum game for Row Inc. and Colm Inc. because the sum of their payoffs in each outcome is not zero. In fact, it is possible for both firms to receive high payoffs if they both choose Option 1, which would result in a total payoff of 16 for both firms.

Scenario: Consider the Tragedy of the Commons Problem