Asked by Mursal Asadullah on May 18, 2024
Verified
Majed is playing a "game" against Rejan,and he has to choose an option without knowing what Rejan will choose.Majed must choose how much money he will contribute to a common pot instead of putting it in his own account,when having X amount in the common pot will benefit both him and Rejan.This situation is called a(n) :
A) commons dilemma.
B) Prisoner's Dilemma.
C) risky shift.
D) ultimatum game.
Commons Dilemma
A situation in which individuals' short-term selfish interests are in conflict with long-term group interests and common good.
Prisoner's Dilemma
A scenario in game theory in which two individuals acting in their own self-interest do not produce the optimal outcome for either party.
Ultimatum Game
A game in economic experiments where two players decide on how to divide a sum of money; the proposer suggests a division and the responder can either accept or reject it.
- Understand the concept of social dilemmas and how they impact individual decision-making within groups.
Verified Answer
LG
Lauren GentlemanMay 20, 2024
Final Answer :
B
Explanation :
The situation described is a classic example of the Prisoner's Dilemma. In this scenario, the best choice for Majed would be to contribute a moderate amount to the common pot, as this would increase the likelihood of both him and Rejan benefiting. However, if either player chooses to be greedy and contribute less or nothing at all, they may end up with a larger individual payout, but it would come at the expense of the other player. Therefore, cooperation and mutual benefit are the rational and ethical choices in a Prisoner's Dilemma.
Learning Objectives
- Understand the concept of social dilemmas and how they impact individual decision-making within groups.