Ann and Bob are working together to build a product. Each of them decides, independently and privately, whether to work hard or to shirk. The eventual product they generate is high quality with probability 1 if both work hard, and is of low quality if both shirk. If exactly one player works hard, then the product is high quality with probability 3 4 . A high quality product is sold in the market at a price of |200, and the gains are split equally between Ann and Bob. A low quality product is worthless and they cannot get any money for it. Working hard costs |40 to the player working hard