Figure 10.1: Three neighbors in a cul-de-sac, Bo, Luke, and Daisy, have an option of contributing or not contributing to paying for and installing outdoor security lighting to help make their cul-de-sac safer. For each person who contributes, one security light will be installed. The payoff matrix for this scenario is shown above.
-Refer to Figure 10.1. If Daisy does not contribute to the lighting, Luke should

Question

Figure 10.1:  Three neighbors in a cul-de-sac, Bo, Luke, and Daisy, have an option of contributing or not contributing to paying for and installing outdoor security lighting to help make their cul-de-sac safer. For each person who contributes, one security light will be installed. The payoff matrix for this scenario is shown above.
-Refer to Figure 10.1. If Daisy does not contribute to the lighting, Luke should

Quizplus · Accepted Answer

Without specific details from Figure 10.1, the general principle in scenarios involving public goods (like lighting in a shared space) suggests that if one party (Daisy) does not contribute, the optimal strategy for another party (Luke) might be to not contribute regardless of a third party's (Bo) actions, to avoid bearing the cost alone. This is a simplification and the actual best choice can depend on the specifics of the situation, such as the benefits received from the lighting and the costs of contributing.

Figure 101: Three Neighbors in a Cul-De-Sac, Bo, Luke, and and Daisy