In the game of PUT (P)and KEEP (K)each child was given nine dollars and, if they chose to put it back, six dollars was added to the nine and the two children shared the total pot of money. Which exchange a has the highest joint payoff?
A)(P, K)
B)(P, P)
C)(K, K)
D)(K, P)

Question

Quizplus · Accepted Answer

In option (B) (P, P), both children choose to put back their nine dollars, each getting an additional six dollars, making the total pot 30 dollars (9+6+9+6). This total is then shared equally, giving each child 15 dollars, which is the highest joint payoff compared to any other combination.

In the Game of PUT (P)and KEEP (K)each Child Was