This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade.They both will enjoy a higher grade when more effort is put into the project,but they also get pleasure from goofing off and not working on the project.The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
Assume that Joe and Sarah,from the figure shown,are also dating,in addition to working together on the joint school project.Further assume that Joe is madly in love with Sarah,who is an excellent student.Sarah tells Joe that she will break up with him if he does not put forth high effort on this project.This future punishment by Sarah is an example of:
A) a commitment strategy.
B) an effort optimization strategy.
C) an ultimatum.
D) a bargaining strategy.

Question

This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade.They both will enjoy a higher grade when more effort is put into the project,but they also get pleasure from goofing off and not working on the project.The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
Assume that Joe and Sarah,from the figure shown,are also dating,in addition to working together on the joint school project.Further assume that Joe is madly in love with Sarah,who is an excellent student.Sarah tells Joe that she will break up with him if he does not put forth high effort on this project.This future punishment by Sarah is an example of:
A) a commitment strategy. 
B) an effort optimization strategy. 
C) an ultimatum. 
D) a bargaining strategy.

Quizplus · Accepted Answer

Sarah's threat to break up with Joe if he does not put forth high effort on the project is an example of a commitment strategy. She is making a credible threat to ensure that Joe puts in the necessary effort, as she knows that he values their relationship and does not want to lose her. This type of commitment strategy is often used in situations where there is a risk of one party shirking or not putting in enough effort, and the other party has a way of incentivizing them to do so.

This Figure Shows the Payoffs Involved When Sarah and Joe