What is the best outcome for becky and sarah

Assignment Help Microeconomics

Reference no: EM132120298

Question: Becky and Sarah are sisters who share a room. Their room can easily get messy, and their parents are always telling them to clean it up. Here are the costs and benefits to both Becky and Sarah, of taking the time to clean their room: If both Becky and Sarah clean, they each spends two hours and get a clean room. If Becky decides not to clean and Sarah does all the cleaning, then Sarah spends 10 hours cleaning (Becky spends 0) but Sarah is exhausted. The same would occur for Becky if Sarah decided not to clean-Becky spends 10 hours and becomes exhausted. If both girls decide not to clean, they both have a dirty room.

a. What is the best outcome for Becky and Sarah? What is the worst outcome? (It would help you to construct a prisoner's dilemma table.)

b. Unfortunately, we know that the optimal outcome will most likely not happen, and that the worst one will probably be chosen instead. Explain what it is about Becky's and Sarah's reasoning that will lead them both to choose the worst outcome.

Reference no: EM132120298

Questions Cloud

Two firms work together to prepare complex bid for buyer : Two firms work together to prepare a complex bid for a buyer. what theory of recovery can Company B allege? What types of damages, if any, may Company B claim?

Show amount of subsidy need to increase equilibrium quantity : The marginal private costs and the marginal private benefits of a firm producing fuel-efficient cars is represented in the following diagram.

Commercial speech by prohibiting outdoor advertising display : Arizona, enacted a city zoning ordinance limiting commercial speech by prohibiting outdoor advertising display signs – including billboards.

Recommend at least two performance measures : Recommend at least two performance measures in each of the balanced scorecard categories.

What is the best outcome for becky and sarah : Becky and Sarah are sisters who share a room. Their room can easily get messy, and their parents are always telling them to clean it up.

The acts of violence associated with workplace violence : What are some of the acts of violence associated with workplace violence?

How each of given changes iaffect poverty and inequality : Describe how each of these changes is likely to affect poverty and inequality: Incomes rise for low-income and high-income workers.

Incorporate multiple perspectives of variety of stakeholders : How would you incorporate multiple perspectives of a variety of stakeholders and/or human services professionals as you treat clients?

Best deploy four new emergency medical services vehicles : The town ow Lytle must determine how to best deploy four new emergency medical services vehicles among five existing EMS locations.

User Account

All Pages