You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation: • If both of you work hard, you both get an A, which gives each of you 50 units of happiness.
• If only one of you works hard, you both get a B, which gives each of you 40 units of happiness.
• If neither of you works hard, you both get a D, which gives each of you 15 units of happiness.
• Working hard costs 30 units of happiness.
Complete the following payoff matrix given the previous information. In each cell, your classmate's payoff is on the left and yours is on the right.
Your Decision
Work Shirk
Classmate's Decision Work , ,
Shirk , ,
The likely outcome is that your classmate and you . If you get this classmate as your partner on a series of projects throughout the year, rather than only once, you are likely to engage in cooperation. Another classmate cares more about good grades: He gets 60 units of happiness for a B and 95 units of happiness for an A.
Complete the following payoff matrix, assuming you have this classmate as a partner.
Your Decision
Work Shirk
Classmate's Decision Work , ,
Shirk , ,
The likely outcome in this case is that your classmate and you . You would prefer the classmate as a partner, and he want you as a partner.