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Will and Grace Have Adjoining Unfenced Back Yards and Each

Question 89

Multiple Choice

Will and Grace have adjoining unfenced back yards and each has just adopted a new puppy.Will values a fence between their yards at $250 and Grace values a fence between their yards at $200.The value of the effort required to build the fence is $300,which will be split equally if they both help build the fence.If one of the neighbors begins building the fence the other might or might not come over to help.Therefore,their payoff matrix is  Will  Grace  Build  Not Build  Build  Grace: $50; Will: $100 Grace: $100; Will: $250 Not Build  Grace: $200; Will: $50 Grace: 0; Will: 0\begin{array}{c}\quad\quad\quad\quad\quad\quad\text { Will }\\\text { Grace }\begin{array}{|c|c|c|}\hline& \text { Build } & \text { Not Build } \\\hline \text { Build } &\text { Grace: } \$ 50 ; \text { Will: } \$ 100 & \text { Grace: }-\$ 100 ; \text { Will: } \$ 250 \\\hline \text { Not Build } & \text { Grace: } \$ 200 ; \text { Will: }-\$ 50 & \text { Grace: 0; Will: } 0 \\\hline\end{array}\end{array}
This game is a(n) _____ because


A) tragedy of the commons;the backyard is treated as a common area by the puppies.
B) prisoners' dilemma;following dominant strategies leads to a non-optimal result.
C) example of logrolling;both neighbors need to cooperate to provide the good.
D) inequitable situation;Grace does not value a fence as highly as does Will.

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