6. Suppose that you and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to do as little work as possible. The decision box and payoffs are as follows:

Assume that having fun is your normal state, but having no fun is as unpleasant as receiving a grade that is two letters lower.

a. Write out the decision box that combines the letter grade and the amount of fun you have into a single payoff for each outcome.

b. If neither you nor your classmate knows how much work the other person is doing, what is the likely outcome? Does it matter whether you are likely to work with this person again? Explain your answer.

Transcribed Image Text:

Classmate's Decision Work Shirk Work Your Decision You get A grade, no fun Shirk You get B grade. fun Classmate gets Classmate gets B A grade, no fun grade, no fun You get B grade. no fun You get D grade, fun Classmate gets B grade, fun Classmate gets D grade, fun