Question

Consider again the two families trying to decide whether to donate to a fund to build a public park. The payoffs are shown in Figure 9P-1.

b. Suppose Family A agrees to match the donation of Family B. Under these new circumstances, what strategy will each family choose?

Solution

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Answered 1 year ago
Answered 1 year ago
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If family A chooses to match the donation of family B they will choose a tit-for-tat strategy.

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