Table 12.3
Payoffs to Villager 1 and Villager 2 in a Road Maintenance Game
(R is the benefits of a maintained road and the project requires a total of L hours of labor,therefore R-L/2>0 is the net utility payoff)

-According to table 12.3,if it is an assurance game,which of the following statement is true?

Question

Quizplus · Accepted Answer

In an assurance game, both players prefer to take the action that they believe the other will take if it leads to mutual cooperation, which results in both being better off. This means that if each villager expects the other to participate, they will also choose to participate, leading to a situation where both cooperating (participating in maintaining the road) makes them better off. This aligns with the characteristics of an assurance game, making all the statements true.

Table 12.3 Payoffs to Villager 1 and Villager 2 in a Road