In the Prisoner's Dilemma Setting for Producing and Stealing,a Tax

question 38

Multiple Choice

In the prisoner's dilemma setting for producing and stealing,a tax imposed on participants could end up changing the payoff matrix so that

• A) one participant is better off,and one participant is worse off.
• B) both participants are worse off.
• C) both participants are better off.
• D) all of the above are possible

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Definitions:

Regression Discontinuity

Regression discontinuity identifies the causal effects of a policy or factor by looking at two samples that lie on either side of a threshold or cutoff.

Causal Effects

Causal effects refer to the change in an outcome directly attributable to a change in a factor or intervention, established through methods that isolate this relation from other variables.

Threshold

The point at which a particular effect or change occurs, often used in context of quantities or levels.

Intention To Treat

A principle used in clinical trials where all patients including those who drop out or deviate from the protocol are accounted for in the final results.