Question: Individual Problems 1 5 - 2 Mr . and Mrs . Ward typically vote oppositely in elections and so their votes cancel each other out.

Individual Problems 15-2
Mr. and Mrs. Ward typically vote oppositely in elections and so their votes "cancel each other out." They each gain 14 units of utility from a vote for their positions (and lose 14 units of utility from a vote against their positions). However, the bother of actually voting costs each 7 units of utility. The following matrix summarizes the strategies for both Mr. Ward and Mrs. Ward.
\table[[,Mrs. Ward,],[Mr. Ward,Vote,Mr. Ward: -7, Mrs. Ward: -7,Mr. Ward: 7, Mrs. Ward: -14],[Don't Vote,Mr. Ward: -14, Mrs. Ward: 7,Mr. Ward: 0, Mrs. Ward: 0]]
The Nash equilibrium for this game is for Mr. Ward to and for Mrs. Ward to . Under this outcome, Mr. Ward receives a payoff of units of utility and Mrs. Ward receives a payoff of units of utility.
Suppose Mr. and Mrs. Ward agreed not to vote in tomorrow's election.
True or False: This agreement would increase utility for each spouse, compared to the Nash equilibrium from the previous part of the question.
True
False
This agreement not to vote a Nash equilibrium.
Individual Problems 1 5 - 2 Mr . and Mrs . Ward

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!