Question
Consider the following workplace scenario. Whitney and Danielle play the game illustrated in the figure below twice. In the first period, both workers simultaneously choose
Consider the following workplace scenario. Whitney and Danielle play the game illustrated in the figure below twice. In the first period, both workers simultaneously choose which project to work on (A, B or C). At this point, their choices are revealed to both workers, and the payoffs accrue. In the second period, again, the workers make their respective choices of which project to work on simultaneously. After the payoffs accrue the game ends. In this scenario, is it possible to have the workers work on project A in the first period as part of a subgame perfect equilibrium? Explain your answer. Interpret your result in the context of the trust/cooperation models.
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