Scenario: Elly owns a small coffee shop. She has only one employee. One weekend, she decides to take a break from work. She is wondering whether she should trust her employee to run the shop in her absence. If she does not trust him, she would have to keep the shop closed, in which case neither she nor her employee will be able to make money. In contrast, if she trusts him, he can either cooperate and run the shop or he can defect and steal from the shop. If he cooperates, both of them will earn money. If he steals from the shop, he will make more money while she will lose.
-Refer to the scenario above.Which of the following will happen in this case?
A) Neither of them will make any money.
B) Only Elly will make money.
C) Elly will trust her employee, but her employee will defect.
D) Elly will trust her employee, and her employee will cooperate.
Correct Answer:
Verified
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