Multiple Choice
The figure shown represents 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.According to the figure, Sarah:
A) should put forth low effort, regardless of what Joe chooses to do.
B) should put forth high effort, regardless of what Joe chooses to do.
C) does not have a dominant strategy.
D) should use the first-mover advantage and put forth low effort.
Correct Answer:

Verified
Correct Answer:
Verified
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