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If Individuals Can Credibly Cooperate and Split the Gains, Which

Question 32

Multiple Choice

If individuals can credibly cooperate and split the gains, which payoff is the most likely?  A: Not Cheat  A: Cheat  B: Not Cheat  A: 1, B: 50 A: 1, B: 1 B: Cheat  A: 2, B: 1 A: 5, B: 5\begin{array} { | l | l | l | } \hline & \text { A: Not Cheat } & \text { A: Cheat } \\\hline \text { B: Not Cheat } & \text { A: } 1 , \text { B: } 50 & \text { A: } 1 , \text { B: } 1 \\\hline \text { B: Cheat } & \text { A: } 2 , \text { B: } 1 & \text { A: } 5 , \text { B: } 5 \\\hline\end{array}


A) 1, 11
B) 1, 1
C) 2, 1
D) 5, 5

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