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Two partners are working on a project together. Each partner works on her own part, and each can put in effort or not, after which
Two partners are working on a project together. Each partner works on her own part, and each can put in effort or not, after which the project outcome is realized. Neither partner observes the effort put in by the other before making their effort choice. The project is most successful if both put in effort, somewhat successful if only one partner puts in effort, and least successful if neither puts in effort. Both partners rank the outcome where they both put in effort the highest {effort is costly), but is worth it with joint effort. Both partners rank the outcome in which neither put in effort second-best (even though the project is not that successful, neither feels guilty or let- down by the other}. However, each partner would rather be the only one who did not put in effort rather than the only one who did. The figure below contains four different extensive form games. Which one could represent the situation wejust described
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