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.

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Definitions:

Cultural Context

Pertains to the environmental and social factors that influence the values, behaviors, practices, and communication of individuals or groups.

Universalism

A philosophy or ethical stance emphasizing fairness, equality, and the importance of treating all people and cultures with respect.

Spotlight Questions

Questions that test the ethics of a decision by exposing it to scrutiny through the eyes of family, community members, and ethical role models.

Ethical Behaviour

Conduct that is aligned with accepted principles of right or wrong governing the professional and personal actions of an individual or group.