Scenario: Beth and Charles are playing a trust game. At the beginning of the game, Beth has to choose whether to trust Charles. If she trusts him, he can choose to either defect or cooperate. The diagram below shows their respective payoffs in different situations.

-Refer to the scenario above.This is an example of ________.
A) a zero-sum game
B) an extensive-form game
C) the free-rider problem
D) the tragedy of commons

Question

Scenario: Beth and Charles are playing a trust game. At the beginning of the game, Beth has to choose whether to trust Charles. If she trusts him, he can choose to either defect or cooperate. The diagram below shows their respective payoffs in different situations.
 
-Refer to the scenario above.This is an example of ________.
A) a zero-sum game 
B) an extensive-form game 
C) the free-rider problem 
D) the tragedy of commons

Quizplus · Accepted Answer

The game described is an extensive-form game, as it involves sequential decision-making and includes nodes representing each player's decision points. The best choice for Beth depends on her beliefs about Charles' behavior, but in general, trusting him may lead to a better outcome on average since a cooperative choice from Charles results in a higher payoff for both players. However, if Beth believes that Charles is likely to defect, she may choose not to trust him to avoid a worse outcome.

Scenario: Beth and Charles Are Playing a Trust Game