Scenario: Beth and Charles are playing a trust game. At the beginning of the game, Beth has to choose whether to trust Charles. If she trusts him, he can choose to either defect or cooperate. The diagram below shows their respective payoffs in different situations.

-Refer to the scenario above.If this game is repeated several times,and reputational considerations are taken into account,Beth will earn ________ and Charles will earn ________ every time.
A) $0; $10
B) $10; $10
C) $0; $50
D) $20; $20

Question

Scenario: Beth and Charles are playing a trust game. At the beginning of the game, Beth has to choose whether to trust Charles. If she trusts him, he can choose to either defect or cooperate. The diagram below shows their respective payoffs in different situations.
 
-Refer to the scenario above.If this game is repeated several times,and reputational considerations are taken into account,Beth will earn ________ and Charles will earn ________ every time.
A) $0; $10 
B) $10; $10 
C) $0; $50 
D) $20; $20

Quizplus · Accepted Answer

When reputational considerations are taken into account in repeated games, players are more likely to cooperate to maintain a good reputation, leading to mutual cooperation where both Beth and Charles earn $10 each time.

Scenario: Beth and Charles Are Playing a Trust Game