Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. and Mrs. Ward typically vote oppositely in elections and so their votes cancel each other out. They each gain 4 units of utility from

Mr. and Mrs. Ward typically vote oppositely in elections and so their votes "cancel each other out." They each gain 4 units of utility from a vote for their positions (and lose 4 units of utility from a vote against their positions). However, the bother of actually voting costs each 2 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: -2,Mrs. Ward: -2

Mr. Ward: 2,Mrs. Ward: -4

Don't Vote

Mr. Ward: -4,Mrs. Ward: 2

Mr. Ward: 0,Mrs. Ward: 0

The Nash equilibrium for this game is for Mr. Ward to and for Mrs. Ward to . 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economic Change In Asia Implications For Corporate Strategy And Social Responsibility

Authors: M Bruna Zolin, Bernadette Andreosso O'Callaghan, Jacques Jaussaud

1st Edition

1317286650, 9781317286653

More Books

Students also viewed these Economics questions

Question

Why isn't manual programming used for continuous-path NC?

Answered: 1 week ago