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. When each player plays his or her dominant strategy, society is poorer and the payoffs are smaller by ________ units than if each player had played the strategy with the ideal outcome for both the individual players and for the group as a whole.

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. When each player plays his or her dominant strategy, society is poorer and the payoffs are smaller by ________ units than if each player had played the strategy with the ideal outcome for both the individual players and for the group as a whole.

Quizplus · Accepted Answer

Without seeing Figure 10.1, we can infer that this question is describing a scenario typical of the Prisoner's Dilemma, where each player choosing their dominant strategy leads to a collectively worse outcome than if they cooperated. The difference in units (6, 12, 18, 30) represents the loss in total payoff due to the lack of cooperation. The correct answer, in this case, is inferred based on common outcomes in such dilemmas, where the loss is significant but without the specific details or the figure, the exact reasoning is based on typical patterns observed in game theory scenarios.

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