Scenario: Roger and Billy are two colleagues who were caught by their boss for forging an important document together and have been taken to separate rooms for interrogation. They are told that if both of them confess their crime, they will be charged a fine of $2,000. If neither of them confesses, they will be fined $1,000 each. However, if one of them confesses while the other does not, the one who confesses will be set free but the other will be fined $3,000.
-Refer to the scenario above.If the colleagues had decided on a fairness penalty of $5,000 before committing the crime,________.

Question

Quizplus · Accepted Answer

The fairness penalty of $5,000 incentivizes both Roger and Billy to deny the crime, as confessing would lead to an unfair outcome and a higher penalty than if both deny.

Scenario: Roger and Billy Are Two Colleagues Who Were Caught