Will and Grace Have Adjoining Unfenced Back Yards and Each

question 130

Multiple Choice

Will and Grace have adjoining unfenced back yards and each has just adopted a new puppy. Will values a fence between their yards at $250 and Grace values a fence between their yards at $200. The cost of building the fence is $300, which will be split equally if they both agree to build the fence. Therefore, their payoff matrix is as follows.  
In the Nash equilibrium of this game:

• A)Will and Grace will both build the fence and split the cost.
• B)Will will build the fence by himself.
• C)the fence will be built, but it is uncertain who will build it.
• D)no fence will be built.

---

Definitions:

Tariff

A tax imposed by a government on imported or exported goods.

Nullify

To legally invalidate or void a law, contract, or other legally-binding agreement.

State Governments

The governing authorities of the 50 states within the United States, each with its own constitution and powers separate from the federal government.

National Government

Refers to the political authority that governs an entire nation, encompassing all three branches (executive, legislative, and judicial) and responsible for national policy, lawmaking, and administration.