Consider an Example of the Prisoner's Dilemma Where 2 Firms

question 74

Multiple Choice

Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either $100 or $180.If both firms bid the same price,the job is shared equally and each firm earns half the value of its bid.Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero) .The cooperative outcome in this situation is

• A)both firms bid $100.
• B)both firms bid $180.
• C)one firm bids $100,the other firm bids $180.
• D)both firms bid $50.
• E)both firms bid $90.

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Definitions:

Group Work

Collaborative efforts of individuals working together in a coordinated manner towards a common goal or objective.

Broker Role

The function or position of acting as an intermediary between parties to facilitate an agreement or provide specialized services.

Community Organization

Community organization is the process of bringing together individuals and groups from a community to work collectively on addressing issues and improving conditions within that community.

Social Work Practice

The professional application of social work values, principles, and techniques to help individuals, families, and communities enhance or restore their capacity for social functioning.