In a Small Isolated Town, There Are Two Types of People

question 4

Multiple Choice

In a small isolated town, there are two types of people, saints and crooks. In business dealings between any two residents of this town, the payoffs are below. What percentage of this town's residents would be saints in an evolutionary stable strategy?

• A) 100%
• B) 33.33%
• C) 83.33%
• D) 28.51%
• E) 0%

---

Definitions:

Initial Endowment

The initial allocation or distribution of resources, goods, or wealth among individuals or entities at the start of an economic experiment or model.

Apples

A type of fruit commonly consumed fresh, cooked, or as juice, recognized for its sweet or tart flavor.

Pareto Optimal Allocation

A condition of resource distribution in which no one person can be made better off without causing detriment to at least another person.

Endowed

In economics, it refers to the initial allocation of income, wealth, or goods to an individual or an entity at the start of an economic analysis or experiment.