Question
Consider again the three peasants Ravi, Ashok, and Quezar who maintain a solidarity network via a Grim Trigger strategy as discussed in Chapter Five. Each
Consider again the three peasants Ravi, Ashok, and Quezar who maintain a solidarity network via a Grim Trigger strategy as discussed in Chapter Five. Each receives a payoff of 9 when the state of nature is favorable to his economic activity (probability = 1/3), but zero otherwise. Suppose now when Ravi becomes sick, he is able to harvest his rice with some probability 0 < p < 1. (The sicker Ravi is, the lower is p.) At what point in Ravi's sickness (level of p) will the network coalition of the three peasants together no longer lie in the core?
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