After Hurricane Maria, hundreds of nonprofit organizations streamed to Puerto Rico and other Caribbean islands to provide disaster relief. Research has found that coordination between nonprofits during disasters is difficult to maintain—it’s easy for individual nonprofits to fundraise and pursue programming on their own while ignoring other organizations working on the same issues. Additionally, there are incentives to do projects that are cheap and have fast turnaround, since donors respond to the visibility of organizations providing disaster relief.

Consider two nonprofit organizations working in Puerto Rico. Together, they could spend time coordinating their efforts and run a shelter for hurricane victims, providing each organization with 100 utils. Alternatively, they could individually distribute paper towels—a simple, low-cost, fast, and visible project—and receive 5 utils.

This situation can be modeled with the following payoff matrix:

		Nonprofit 2
		Run shelter	Distribute paper towels
Nonprofit 1	Run shelter	100, 100	0, 5
	Distribute paper towels	5, 0	5, 5

What kind of game is this? Why? Can cooperation be ensured? How?

Answer rating: 100% (QA)

20 Word Summary Prisoners Dilemna because its 1 simultaneous and 2 noncooperative where players pursue their dominant strategy to reach Nash Equilibri... View the full answer