Cooperation
A) Is individually rational
B) Fails when the temptation to cheat is sufficiently strong
C) Eliminates the temptation to cheat
D) Is always the best response

Question

Quizplus · Accepted Answer

Cooperation involves individuals working together towards a common goal, which can result in mutual benefits. However, if one of the individuals has a strong temptation to cheat (i.e. act in their own self-interest at the expense of the others), cooperation may fail. This is because the individual may prioritize their own short-term gain over the long-term success of the cooperation, leading to a breakdown in trust and cooperation. Therefore, while cooperation can be individually rational and often leads to better outcomes for all involved, it is not always a guaranteed success and can be undermined by the temptation to cheat.