$03$Question$(2$ points$)$

Jesse and Walt are considering going in together on the purchase of a new RV$.$ If they buy the RV$,$ then they will each have equal access to it$.$ Jesse's reservation value of the RV is $$17000.$ Walt's reservation value is $$18000.$

$1$st attempt

Part $1(1$point$)$

Suppose the RV is priced at $$28000.$ In which of the following cases will Jesse and Walt buy the RV$?$

Choose one or more:A$.$Both Jesse and Walt both truthfully reveal their reservation values.B$.$Walt reports his reservation value truthfully, but Jesse free rides on Walt and does not report truthfully.C$.$Jesse reports his reservation value truthfully, but Walt free rides on Jesse and does not report truthfully.D$.$Both Walt and Jesse attempt to free ride on the other, and neither reports his reservation value truthfully.

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Part $2(1$point$)$

Now suppose the price of the RV is $$14500.$ In which of the following cases will Jesse and Walt buy the RV$?$

Choose one or more:A$.$Jesse reports his reservation value truthfully, but Walt free rides on Jesse and does not report truthfully.B$.$Both Jesse and Walt truthfully reveal their reservation values.C$.$Both Walt and Jesse attempt to free ride on the other, and neither reports his reservation value truthfully.D$.$Walt reports his reservation value truthfully, but Jesse free rides on Walt and does not report truthfully.

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