Question
Mr. and Mrs. Ward typically vote oppositely in elections and so their votes cancel each other out. They each gain 14 units of utility from
Mr. and Mrs. Ward typically vote oppositely in elections and so their votes "cancel each other out." They each gain 14 units of utility from a vote for their positions (and lose 14 units of utility from a vote against their positions). However, the bother of actually voting costs each 7 units of utility. The following matrix summarizes the strategies for both Mr. Ward and Mrs. Ward.
Mrs. Ward
Vote
Don't Vote
Mr. Ward
Vote
Mr. Ward: -7,Mrs. Ward: -7
Mr. Ward: 7,Mrs. Ward: -14
Don't Vote
Mr. Ward: -14,Mrs. Ward: 7
Mr. Ward: 0,Mrs. Ward: 0
The Nash equilibrium for this game is for Mr. Ward to_____________(not vote, vote)and for Mrs. Ward to______________(not vote, vote). Under this outcome, Mr. Ward receives a payoff of____________________ units of utility and Mrs. Ward receives a payoff of __________________ units of utility.
Suppose Mr. and Mrs. Ward agreed not to vote in tomorrow's election.
True or False: This agreement would increase utility for each spouse, compared to the Nash equilibrium from the previous part of the question.
True
False
This agreement not to vote_________________(is, is not)a Nash equilibrium.
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