​Use the Following to Answer Question

question 80

Multiple Choice

​Use the following to answer question
​Sam and Sarah are thinking about getting married.However if either of them cheats on the other,they would get a payoff of 10,while the other person gets zero.If neither cheat,they stay with each other and get a payoff of 7 each and if both cheat,the relationship falls apart and each get a payoff of 1.
-​Is this outcome efficient?

• A)​Yes because both of them are maximizing their payoffs
• B)No,because both of them can do better than their current equilibrium
• C)No,because cheating is goodNo,because cheating is good
• D)​All of the above

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Definitions:

Conflict Structure

The underlying framework or pattern of relationships, interests, and power dynamics that characterize a conflict.

Hiring a Mediator

The act of engaging an impartial third party to facilitate the resolution of a dispute between conflicting parties.

Balance Power

The distribution of power among various parties in a way that no one side has dominance over the others.

Principled Negotiation

A negotiation strategy that focuses on the merits of an issue and seeks mutual gains or objectives rather than positioning.