Will and Grace Have Adjoining Unfenced Back Yards and Each

question 45

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 value of the effort required to build the fence is $300,which will be split equally if they both help build the fence.If one of the neighbors begins building the fence the other might or might not come over to help.Therefore,their payoff matrix is $\begin{array}{c}\text { Will }\\\text { Grace } \begin{array}{|c|c|c|}\hline &\text { Build } &\text { Not Build } \\\hline \text { Build } & \text { Grace: } \$ 50 ; \text { Will: } \$ 100 & \text { Grace: } \$ 100 ; \text { Will: } \$ 250 \\\hline \text { Not Build } & \text { Grace: } \$ 200 \text {; Will: }-\$ 50 & \text { Grace: 0; Will: } 0 \\\hline\end{array}\end{array}$
If Grace sees Will building the fence she would earn a higher payoff by

• A) helping him.
• B) not helping him because she values the fence by less than does Will.
• C) an uncertain amount.It depends on whether it is a sequential game or a simultaneous game.
• D) not helping him because she will get the value of the fence without expending the effort.

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Definitions:

System Readjusts

The process by which a system modifies itself or its components to adapt to changes in its environment or operations.

Vestibular Sacs

Part of the inner ear involved in balance and spatial orientation, containing fluid that moves in response to changes in head positions.

Gravity and Movement

The influence of gravitational force on the mechanical actions and behaviors of bodies, relevant in physics and human physiology.

Figure-Ground

A principle in perception that involves distinguishing a visual stimulus (the figure) from its surrounding background (the ground).