Lee and Cody Are Competitors

question 98

Multiple Choice

Lee and Cody are competitors.Each is considering whether to take aggressive action against the other or to cooperate.Cody can observe Lee's decision.Their decision tree can be diagrammed as follows:
Refer to the figure above.Suppose Lee and Cody enter into a binding non-aggression agreement.As part of that agreement they negotiate a fine that Cody would have to pay to Lee if Cody responded to Lee's cooperative choice with aggression.For that fine to be effective,it must be

• A)less than 15.
• B)greater than 15.
• C)equal to 40.
• D)equal to 25.

---

Definitions:

Funded Studies

Research projects that receive financial support from government agencies, organizations, or private entities to conduct their investigations.

Unfunded Studies

Research projects that do not receive financial support from external sources such as governments, institutions, or private donors.

Norman Triplett

A psychologist known for conducting one of the earliest experiments in social psychology about the effects of competition on performance.

Racing Cyclists

Athletes who specialize in competitive cycling, often participating in races that test speed, endurance, and strategic skill on various terrains.