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 40 units of happiness.
If only one of you works hard, you both get a B, which gives each of you 30 units of happiness.
If neither of you works hard, you both get a D, which gives each of you 10 units of happiness.
Working hard costs 25 units of happiness.
(a) 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
Classmate's Decision WorkShirk
Work__ , _ , __
Shirk__ , _ , __
(b) The likely outcome is that the classmate and you .
(c) If you get this classmate as a partner on a series of projects throughout the year, rather than once, you are likely to engage in cooperation.