Table 12.2 Payoffs to Fisher 1 and Fisher 2 in a

question 27

Multiple Choice

Table 12.2
Payoffs to Fisher 1 and Fisher 2 in a
Common Property Resource Prisoners' Dilemma
($ of profit)

-Refer to table 12.2,suppose that two people,Fisher 1 and Fisher 2,have access to a fishing ground,and that each may choose to harvest fish in either a restrained or unrestrained fashion.What is the Nash equilibrium?

• A) Fisher 1 and Fisher 2 both choose: no restraint
• B) Fisher 1 and Fisher 2 both choose: restraint
• C) Fisher 1 chooses restraint and Fisher 2 chooses no restraint
• D) Fisher 1 chooses no restraint and Fisher 2 chooses restraint

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Definitions:

Statute of Limitations

A legal rule setting the maximum time period in which certain actions can be brought to court or certain rights enforced, after which claims are barred regardless of merit.

Undisputed Debt

The amount of money owed that is not contested or challenged by the debtor, accepted as due and payable.

Statute of Limitations

The law prescribing the time limit within which legal action must be brought for certain kinds of claims or rights to be enforced.

Illusory Promise

A statement that appears to be a promise but does not actually commit the promisor to any action, lacking enforceable obligations.