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5. Country A and Country C are at war. Country B is considering intervening in the war on one of the combatant's side or staying
5. Country A and Country C are at war. Country B is considering intervening in the war on one of the combatant's side or staying neutral. Country B's utility from Country A winning the war is equal to (I, and Country B's utility from Country C winning the war is equal to 6. The probability that one of the countries wins the war is its plus its ally's share of the combatants' resources. (Thus probability that A wins the war if B stays out is a/(a+c), the probability that A wins if B enters on A's side is (a+b)/ (a+b+c) the probability that C wins if B enters on C's side is (b+c)l'(a+b+c), and so on and so forth). Country A's resources (a) are equal to 2, Country B's resources (b) are equal to 1, and Country C's resources (6) are equal to 1. The costs to Country B for entering the war on Country A's side are 2, and the costs to Country B for entering the war on Country C's side are also 2. a} What is Country B's expected utility of intervening on County A's side? b) What is Country B's expected utility of intervening on Country C's side? c) What is Country B's expected utility of staying neutral? (1) What action will B take? Why? e} Suppose B cares more about C winning. Its utility from Country C winning that war is now 15. What action will B take? Why
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