Four friends decide to meet at a Chinese restaurant for dinner. They decide that each person will order an item from the menu and they will share all dishes. When the final bill for the meal comes, they decide they will split the cost evenly among each of the people at the table. When the food is delivered to the table, each person faces incentives similar to those associated with:

Question

Quizplus · Accepted Answer

Each person has an incentive to consume more of the shared dishes to ensure they get their fair share before others finish the food. This is similar to the incentives associated with the consumption of a common resource good, where each individual has the incentive to consume as much as they can before others finish it.

Four Friends Decide to Meet at a Chinese Restaurant for Dinner