Exit, Voice, and Loyalty

question 14

Multiple Choice

Exit, Voice, and Loyalty
Below is the Exit, Voice, and Loyalty game between the state and the citizen. Recall that E is the payoff that the citizen gets when she exits, L is the payoff that the state gets from retaining a loyal citizen, 0 is the payoff that the citizen gets from remaining loyal, and C is the cost that the citizen must pay for using voice.
Let E = 0.5, let L > 1, and let C = 0.25.

-What is the expected outcome of the game if you use these payoff values?

• A) citizen uses voice, state responds
• B) citizen uses voice, state responds, citizen exits
• C) citizen exits
• D) citizen remains loyal
• E) citizen uses voice, state ignores.

---

Definitions:

Low-Context Countries

Countries where communication is explicit, messages are direct, and social structures are less significant in conveying understanding.

Written Words

Text that has been recorded in some form, whether digitally or on a physical medium, allowing for communication, expression, and documentation.

Spoken Words

Verbal communication using language or sounds to convey messages or express thoughts.

Low-Context Cultures

Cultures where communication is direct, explicit, and relies less on context, background, and non-verbal cues for understanding.