Scenario 13.7 Consider the Game Below About Funding and Construction of a of a Dam

question 113

Multiple Choice

Scenario 13.7
Consider the game below about funding and construction of a dam to protect a 1,000-person town. Contributions to the Dam Fund, once made, cannot be recovered, and all citizens must contribute $1,000 to the dam in order for it to be built. The dam, if built, is worth $70,000 to each citizen.
-In the game in Scenario 13.7, the strategy pair that pays:

• A) $69,000 to each player is the only equilibrium.
• B) ($0, -$1000) is the only equilibrium.
• C) (-$1000, $0) is the only equilibrium.
• D) $0 to each player is the only equilibrium.
• E) $69,000 to each player and the strategy pair that pays $0 to each player are equilibria.

---

Definitions:

Causes Of Conflict

Factors or situations that lead to disagreements, disputes, or clashes between individuals or groups.

Group Cohesiveness

the extent to which members of a group are attracted to each other and motivated to stay in the group, affecting the group's overall performance.

Intergroup Conflicts

Disputes or disagreements that occur between different groups or teams, often resulting from competition for resources or differences in objectives.

Group Loyalty

is the commitment and strong emotional attachment members feel towards their group, often prioritizing group goals over personal ones.